Slovakia PESTLE Insights – A Macroeconomic Outlook Report

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Slovakia PESTLE Insights Report Overview

The GDP of Slovakia was $132.4 billion in 2023 and was ranked 39th of 153 nations in the GCRI Q3 2023. Consumption recovery from the energy price shock and increased investment driven by EU funds, the RRF, and government initiatives are anticipated to contribute to this growth. The inflation rate is expected to decrease from in 2024, positively impacting consumer confidence. However, new measures addressing high energy prices and implementing social initiatives may lead to elevated public deficits in 2023, 2024, and 2025, as per the European Commission.

Slovakia Macroeconomic Key Sector’s Contribution to the Economy

Slovakia Macroeconomic Key Sector’s Contribution to the Economy

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The Slovakia PESTLE insights report consists of the country’s snapshot, risk factors about the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure, and natural and geographic aspects that might impact business.

GDP 2023 $132.4 Billion
Key Landscape ·       Political Landscape

·       Economic Landscape

·       Social Landscape

·       Technological Landscape

·       Environmental Landscape

·       Legal Landscape

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PESTLE Insights of the Slovakia Macroeconomic Outlook Report

Political Landscape: According to the World Bank, World Governance Indicators (2023), Slovakia had a strong percentile score of 63.7 in terms of government effectiveness, which measures the quality of public services. It also measures the quality of civil service and its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment to its stated policies. Furthermore, Slovakia’s newly-formed government, in a program endorsed on November 13, 2023, plans to increase various taxes, including those on banks, to finance higher pensions and overall spending while gradually reducing the euro zone’s highest budget deficit.

 Economic Landscape: Slovakia boasts a robust heritage in the automotive industry, making it the preeminent economic sector and the primary catalyst for the nation’s economic growth. Presently, it stands as the most influential sector, contributing significantly to the Slovak GDP, export figures, and employment opportunities. Slovakia stands to benefit economically as modern trends in the automotive industry, featuring alternative drives and autonomous control, pose both a challenge and a significant opportunity. The country has the potential to attract new investment projects associated with this transformative shift, enhancing its economic strength.

Slovakia PESTLE Landscapes

Slovakia PESTLE Landscapes

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Scope

In April 2023, the European Commission announced allocation of EUR190 million ($206.5 million) to foster development of railway infrastructure in Slovakia.

Key Highlights

The SKSM index has been on a volatile trend. As of December 13, 2023, the index stood at 315.4, compared to 340.2 on December 13, 2022.

Reasons to Buy

  • This report identifies the potential of the country as an investment destination by analyzing the political, economic, social, technological, legal, and environmental (PESTLE) structure.
  • PESTLE Insights provides a 360-degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials, and direction of operations
  • Along with providing the country’s snapshot, the report captures the risk factors about the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure, and natural and geographic aspects that might impact business.
  • This report also highlights key clusters/cities which contribute significantly to the country’s GDP and population along with major companies’ presence in these areas.

Sloval Telekom
PENTA

Table of Contents

List of Exhibits

Did You Know?

Country Highlights

Key Economic Updates

Country Snapshot

Political Landscape

Economic Landscape

Social Landscape

Technological Landscape

Legal Landscape

Environmental Landscape

Outlook

Table

Exhibit 1: Slovakia’s performance in terms of the country’s risk analysis in comparison to Eastern Europe and the world

Exhibit 2: Performance overview (score: 0-100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: SKSM index, (December 2022 – December 2023)

Exhibit 5: Key sectors contribution to the economy (2019–26f)

Exhibit 6: FDI inflows, FDI outflows, FDI inward stock and FDI outward stock (2018–22)

Exhibit 7: Greenfield FDI projects and net cross border M&As seller deals (2018–22)

Exhibit 8: Key infrastructure indicators

Exhibit 9: Real GDP and household consumption growth rate (2019–26f)

Exhibit 10: Real GDP growth rate comparison (2023e)

Exhibit 11: Volume of exports and imports growth (2019–26f)

Exhibit 12: Current account balance (2019–26f)

Exhibit 13: Top three commodity exports, % of total exports (2018–22)

Exhibit 14: Vehicles other than railway or tramway rolling stock, and parts and accessories thereof exports, % of world total (2022)

Exhibit 15: Interest rates (December 2018 – December 2023)

Exhibit 16: Exchange rate and inflation (2019–26f)

Exhibit 17: Public finance (2019–26f)

Exhibit 18: General government debt (2019–26f)

Exhibit 19: Unemployment rate (2019–26f)

Exhibit 20: Average annual wages (2019–26f)

Exhibit 21: Labor cost index (2019–26f)

Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025f)

Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025f)

Exhibit 24: Gender split (1995, 2005, 2015, 2025f)

Exhibit 25: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2023e)

Exhibit 26: Number of patents granted per million population (2022)

Exhibit 27: High-technology exports, % of manufactured exports (2022)

Exhibit 28: Rule of law index (rankings) 2023

Exhibit 29: Corruption perceptions index (rankings) (2022)

Exhibit 30: Renewable energy, installed capacity (2019–23e)

Exhibit 31: CO2 emissions (2018–22)

Figures

List of Figures

Exhibit 1: Slovakia’s performance in terms of its country risk analysis in comparison to Eastern Europe and the world average

Exhibit 2: Performance overview (Score: 1-100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: SKSM index

Exhibit 5: Exchange rate, daily basis (October 2021 – October 2022)

Exhibit 6: Key sectors’ contribution to the economy

Exhibit 7: FDI inflows to Slovakia, FDI outflows from Slovakia, and FDI inward stock, FDI outward stock (2017-21)

Exhibit 8: Value and number of Greenfield FDI projects in Slovakia and net cross border M&As purchases in Slovakia (2017-21)

Exhibit 9: Key infrastructure indicators

Exhibit 10: Real GDP and household consumption growth rate (2017-24f)

Exhibit 11: Real GDP growth rate comparison (2021)

Exhibit 12: Export, import and trade balance (2017-24f)

Exhibit 13: Current account balance (2017-24f)

Exhibit 14: Top three commodity exports, % of total exports (2017-21)

Exhibit 15: Natural pearls and precious stones, % of total exports (2021)

Exhibit 16: Interest rates (January 2017 – November 2022)

Exhibit 17: Exchange rate and inflation (2017-2024f)

Exhibit 18: Public finance (2017-24f)

Exhibit 19: General government debt (2017-24f)

Exhibit 20: Unemployment rate (2017-24ff)

Exhibit 21: Average annual wages (2017-24f)

Exhibit 22: Labor cost index (2017-24f)

Exhibit 23: Rural/urban share of total population (1995, 2005, 2015, 2025)

Exhibit 24: Age-group share of total population (1995, 2005, 2015, 2025)

Exhibit 25: Gender split (1995, 2005, 2015, 2025)

Exhibit 26: Internet users % of total population, mobile penetration rate and broadband penetration rate (2020)

Exhibit 27: Number of patents granted per million population (2020)

Exhibit 28: High-technology exports (% of manufactured exports) (2020)

Exhibit 29: Doing business in Slovakia (2021)

Exhibit 30: Corruption perceptions index (rankings) (2021)

Exhibit 31: CO2 emissions (2017-21)

Frequently asked questions

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