Market Briefing – The Slovak Republic

ECONOMIC SITUATION

The Slovak Republic is located in central Europe. It borders the Czech Republic, Poland, Ukraine, Hungary and Austria. Slovakia became a member state of European Union (EU) on 1st May 2004. In May 2008, the European Commission announced that Slovakia would join the central monetary system of the Euro on 1st January 2009 and become the 16th member state using Euro. The Gross Domestic Product (GDP) in the Slovak Republic increased 10.4% in 2007; it was the fastest economic developing country in the European Union. By joining the central monetary system and using the Euro will bring new momentum to the economic development in Slovakia.

BUSINESS OPPORTUNITIES

Tourism
Piestany, the famous hot springs city in Slovakia, announced in April 2008 that it successfully attracted various tourism investment projects worth EUR 1 billion. The core parts of the projects include an international golf course, hotels, casinos, shopping centres, hot springs, therapy and medical service facilities. A foreign-funded company also planned to invest $10 billion Slovak Koruna (EUR 320 million) for the construction of related entertainment facilities and the reconstruction of the airport infrastructure, with an objective of making Piestany a world renowned hot springs centre. The large inflow of foreign investment and government support holds great potential for the development of tourism in Slovakia.

Real Estate Industry
Following rapid economic development, an increase in salaries as well as the market’s expectation of the forthcoming Euro, the real estate industry in Slovakia has undergone major developments. Thousands of foreign investors, especially those from EU member states, are optimistic about the development of the market and investment in the real estate industry in Slovakia. The revenue from real estate activities in 2007 amounted to approximately EUR 840 million; showing a 24% increase in the price per square metre, reaching a level of EUR1,189 per square metre. Business operators expect the development in the real estate industry in Slovakia to show great potential. Of all regions, the prices in the Bratislava area are the highest reaching EUR1, 666 per square metre.

Automobile Industry
The automobile industry in the Slovak Republic has grown rapidly in recent years and accounted for 25% of the GDP in 2007. Automobile exports amounted to one third of the country’s total exports. The volume of automobile production in 2007 reached 571,000 cars, approximately double the number of 295,000 cars manufactured in 2006. The automobile production per capita ranks first in the world. According to the Automotive Industry Association of the Slovak Republic, it is estimated that 40,000 new jobs will be created in the sector in the next 3 to 4 years.

MAJOR WEBSITE RECOMMENDATION:

• SLOVAK INVESTMENT AND TRADE DEVELOPMENT AGENCY (SARIO)
  http://www.sario.sk/
  The mission of SARIO is to encourage economic growth by promoting Slovakia’s economic environment, attracting foreign direct investment and developing FDI projects. Comprehensive information on the business environment, trade partners and events in Slovakia are available on the website.
• THE MINISTRY OF ECONOMIC OF THE SLOVAK REPUBLIC
  http://www.economy.gov.sk/index/index.php
  The official website of the Ministry of Economy, the Slovak Republic provides the latest information on legislation and statistics related to trade and investment in Slovakia.
• STATISTICAL OFFICE OF THE SLOVAK REPUBLIC
  http://portal.statistics.sk/showdoc.do?docid=359
  As the national statistical institution, the Statistical Office, the Slovak Republic is in charge of the provision and analysis of up-to-date statistics. various large databases are also available on the website.

Source: CIA-The World Fact Book – Slovakia https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html

Source: Slovak Investment and Trade Development Agency http://www.sario.sk/?development-of-foreign-trade
Main Exports – vehicles, machinery and electrical equipment, base metals, chemicals and minerals, plastics
Main Imports – machinery and transportation equipment, intermediate manufactured goods, fuels, chemicals, miscellaneous manufactured goods

Source: CIA-The World Fact Book – Slovakia https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html

Source: Statistical Office of The Slovak Republic http://portal.statistics.sk/showdoc.do?docid=359
The Ministry of Economy, The Slovak Republic http://www.economy.gov.sk/index/go.php?lang=en&id=30&idm=0

Source: The Statistics and Census Service http://www.dsec.gov.mo/ Note 1 : Exports = Domestic Exports + Re-exports
Note 2 : From May 2000, data on Transit is only available up to the 4th digit of NCEM/HS

SOURCE:

• The Ministry of Foreign Affairs of the People’s Republic of China
  http://www.fmprc.gov.cn/chn/default.htm
• The Ministry of Commerce of the People’s Republic of China
  http://www.mofcom.gov.cn/
• The Embassy of the People’s Republic of China in the Slovakia Republic
  http://sk.china-embassy.org/chn/
• The Economic and Commercial Counsellor’s office of the Embassy of the People’s Republic of China in the Slovakia Republic
  http://sk.mofcom.gov.cn/index.shtml
• Macao Statistics and Census Service
  http://www.dsec.gov.mo/c_index.html
• The World Factbook
  http://www.cia.gov
• Statistical Office of the Slovak Republic
  http://www.tradepoint.org/index.php?id=537&l=
• Slovak Investment and Trade Development Agency (SARIO)
  http://www.sario.sk/