Slovakia is a small, open, import, and acquainted frugality, with a population of 5.5 million. Slovakia joined the ECU Union (EU) and NATO in 2004 and thus formed the Eurozone in 2009. Slovakia could also be a gorgeous destination for foreign direct investment. It’s a developing country with an ultramodern well paid frugality. It also carries out positive measures of press freedom, internet freedom, and civil liberties in measures of press freedom. The country maintains a combination of a request for frugality with comprehensive social security furnishing citizens with free education and universal health care.
(FDI), with a positive geographic position within the center of Europe, and an investment friendly nonsupervisory terrain. a relief government was tagged within the administrative election in February 2020. The current government campaigned very much on an anti-corruption platform and has pledged to ameliorate the primary business climate.
In 2019, Slovak GDP grew by 2.3 percent, fueled substantially by growing domestic consumption. While the average stipend in Slovakia still is significantly below the OECD normal, high welfare payments increase the overall cost of labor, particularly. for low-professed, low paycheck workers.
Factors attracting investors in Slovakia
Slovakia is appealing as a destination due to the fairly low cost yet professed labor force and a favorable labor force and good geographical position in the heart of central Europe. The country has attracted investments worth over 1 billion over the history of 9 months, nearly double as important as the total quantum of investments that landed in Slovakia last time, the country has seen prospects of attracting foreign investors who ameliorate most systems that have been heading to the engineering sector, the electrotechnology assiduity and automotive sector. Changes to major duty, labor, and social security laws that have been criticized by the original business community, investment professionals agree that Slovakia remains a conducive investment destination.
Health sector
When the COVID19 outbreak reached Europe, Slovakia organized itself as one of the fastest and strictest response programs within the region to avoid overstraining its limited healthcare capacities. Slovakia’s profitable recovery will largely depend upon the recovery of its main profitable mates Germany, Czech, and Poland. Lately, estimates of the Finance Ministry’s Institute of Financial Policy anticipate a compression of roughly –7.2 percent of GDP and a drop in exports by 1.4 percent in 2020 followed by a fast rise of GDP of 6.8 percent in 2021. The labor request will presumably lose jobs and severance should rise by 3 percent to 8.8 percent in 2020. Within the worst scenario, the government’s insufficiency could fall to 7 percent of GDP. Still, because of the slow pace. Absorbing EU finances, the Slovak government expects to be able to hide nearly €2.5 billion of its coronavirus combined charges using EU finances.
A lot of German companies are significant players in the Slovak market. Nonetheless, their precise number is difficult to ascertain due to various companies being possessed by subsidiaries registered in other countries. It is approximated that about 2,400 companies with the explicit or implicit engagement of German capital operate in the Slovak market.
The Takeaway
Slovakia remains the most important per capita, machine patron, in the world, with four major machine directors and multitudinous. suppliers. Manufacturing sectors, including automotive, ministry and transport outfit, metallurgy and substance processing, electronics, chemical, and pharmaceutical remain seductive and have the eventuality for further growth.
Slovakia continues to face structural challenges of a hamstrung bar, a failure of investment in the invention, a shy education system, and a high perception of corruption. There are multitudinous high value added investments so far, despite Slovak attempts of going to court. R&D. Private and public investment in R&D remains truly low compared to the OECD normal, and inefficiencies in the delineation. available EU finances persist.
