Tatra Tiger: Since 2004, Slovakia’s GDP grew by a stunning 7,4% on average and the unemployment fell from 18,2% to 9,5%. Although Slovakia will feel the impact of the global crisis it is expected that it will recover relatively swiftly after a negative GDP growth of 2,6% in 2009. For 2010 a growth of 0,7% is expected.
Reform champ: Slovakia transformed from a centrally-planned to a competitive market-driven economy within a few years after having lagged behind in the reform-process for a long time. A pro-European government at the turn of the millennium turned it into the reform champion in Central Europe as it pushed through the necessary reforms required by the EU. This allowed Slovakia to join the EU in 2004 and the Eurozone in 2009, well before any of its neighbouring countries in Central Europe.
CEE Pioneer - flat tax, € adoption…: The young republic (1993) is somewhat of a pioneer in the Central European region – especially so in regards to encouraging foreign investment by creating a business-friendly climate. As the first country in CEE it radically overhauled its tax system by introducing a flat rate tax of 19% on all types of incomes. On top there is no double taxation and a 0% dividend tax. Moreover, as the 1st country in the CEE region it joined the Eurozone in January 2009 after having complied with the strict Euro-adoption Maastricht criteria.
Qualified labour for a rock-bottom price: Slovakia offers a well educated labour force of 2,1 mio. coming from an engineering and mechanical production tradition. The salary level is among the lowest in the region. Young Slovaks have good language and IT skills. According to the World Bank’s Student Learning Assessment Database, Slovaks outscore all other Central and Eastern European students in math and place third in science.
