Countries that directly influence economics in Slovakia

    The article is focuses on the most notable countries which directly influence the GDP of Slovakia and explain why Slovakia is interesting country for great investment. Accordingly this article provide you basic information about the segment where they have already invested.      

     In general Slovakia has a small and open economy with the result that it is very sensitive to the external economics environment. Therefore we can expect significant impact on the slovak economy from the economics of countries which have invested in Slovakia and the loss of confidence foreign investors. The financial sector was target by the financial crises very slightly, therefore in first phase the Slovakian economy didn’t notice the crisis’ appearance. But in the second phase, based on marked decline of economic activity in countries of our foreign business partners, the effects of the crisis was significant in Slovakia too. Exports are a very important part of the Slovak economy, in volume estimated as 78 % of GDP, and are headed in the main to countries of European union.        

       Based on total cumulative volume of direct foreign investment the most notable business partners are the Netherlands which has already invested 7,49 mld. Euros, then in the second position is Germany with 4,24 mld. euros and Austria has the third position, which has already invested more than 4,156 mld. euros.     

       The largest partner for Slovakian exports is Germany, which receives more than 25 % of Slovakian exports. It means the Slovak market is very dependent on Germany economics. If Germany is in a business depression, the Slovak market dims too, and if the German market increases, the Slovak market increases too. Because of Germany, Slovakia is one of largest manufacturers of cars in Europe. More than 45 % of companies focus on auto parts and this segment employs more than 30 % of the Slovak population.  In recent years Slovakia has presented new opportunities for investors. While the oil price has been increasing, experts have started to develop  new engines for cars based on electric energy and Slovakia is very suitable country for develop and fabrication. 

10 Reasons for Investing in Slovakia 

1. Central European hub and favourable geographic location

2. Political & economic stability, the highest economic growth in the region

3. 19% flat tax rate and 0% dividend tax

4. Availability of highly skilled workforce

5. Low labour costs vs. high labour productivity

6. Euro as an official currency from 2009

7. Large selection of industrial land and offices available for purchase/lease

8. Harmonised investment incentives

9. Infrastructure that is growing steadily

10. High innovation potential for R&D projects

SARIO, April 2009