The Slovak economy has been relatively resilient to the energy crisis, but growth has slowed amid high inflation, weakening foreign demand and tightening financial conditions. The pandemic and the energy crisis have deteriorated public finances; steady fiscal consolidation is now needed to rebuild fiscal buffers and improve long-term fiscal sustainability in the face of rapid population ageing. Sustaining economic convergence and facilitating inclusive structural change requires improving skill provision at all stages of the learning cycle, fostering the domestic innovation capacity and improving the business environment. A more consistent pricing of carbon across the economy and stronger incentives for green investment and innovation would make growth more sustainable. Improving housing affordability requires structural reforms to improve the efficiency of the housing market, property tax reforms, and targeted support to vulnerable households. Incentives for housing renovation must be strengthened to address energy poverty and achieve environmental goals.
Slovak Republic Economic Snapshot
The snapshot offers a concise summary of the Slovak Republic's economic trends and prospects, drawing from the OECD Economic Survey, Economic Outlook, and Economic Policy Reform: Going for Growth reports, delivering in-depth analyses of economic trends, suggested policy recommendations, alongside an overview of structural policy developments.
Latest Economic Survey of the Slovak Republic (March 2024)
Enhancing the Slovak National Productivity Board’s set-up and analytical capacity
In the framework of the project “Slovak Republic: Evaluation of the Position and Performance of the National Productivity Board (NPB)”, funded by the EU through the Structural Reform Support Programme, the OECD has been supporting the Slovak NPB to align its work and activities with best international practices, in co-operation with the Directorate-General for Structural Reform Support (DG REFORM) of the European Commission. The goal of the project is to strengthen the Slovak NPB’s institutional set-up and analytical capabilities to collect and analyse productivity data, as well as develop policy-oriented recommendations.
This report provides an overview of practical strategies to enhance the capacity of the Slovak NPB to analyse productivity trends and contribute to the development of pro-productivity policies. It draws on international practices and experience of other NPBs and pro-productivity institutions. It provides lessons tailored to the Slovak NPB that can provide guidance and insights for other institutions working on productivity analysis in other EU and OECD countries.
This work is a joint effort of the OECD Economics Department and the Directorate for Science, Technology and Innovation.
20th Anniversary of OECD Membership
Since joining the OECD in 2000, the Slovak Republic has continuously ranked among the fastest growing OECD economies, progressively catching up with higher-income countries. Labour market performance and living standards have improved at a high pace, while inequality remained low. In 2019, the typical Slovak worker earned 70% more than 20 years earlier.
Macroeconomic and financial stabilisation, privatisations, changes in business regulations, tax reforms and policies to foster labour market dynamism were all key to promote economic growth and convergence to higher-income countries. Together with its favourable geographical position, this contributed to make the Slovak Republic one the most sought-after investment destinations in Europe.
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