Economy in Slovakia
According to SARIO (The Slovak Investment and Trade Development Agency), the World Bank has rated the Slovak Republic as the most reformed country in improving its investment environment last year. Slovakia was included among the 20 leading world economies which created the most favourite conditions for business. Slovakia's economy is growing at full speed. Gross domestic product of the Slovak Republic has recently been on the increase despite several negative conditions at home and abroad. Slovakia will also be the first Central European country to adopt the Euro in January 2009, leaving countries like the Czech Republic, Poland and Hungary behind.
The Slovak labour force is one of the least expensive in Central Europe yet has a comparable productivity which keeps increasing. The cost of labour and the average wage is several times lower than in the EU. Due to the high yet decreasing level of unemployment, there is still a large pool of under-utilised yet qualified labour force.
Economy - overview: Slovakia has mastered much of the difficult transition from a centrally planned economy to a modern market economy. The DZURINDA government made excellent progress during 2001-04 in macroeconomic stabilization and structural reform. Major privatizations are nearly complete, the banking sector is almost completely in foreign hands, and the government has helped facilitate a foreign investment boom with business-friendly policies, such as labor market liberalization and a 19% flat tax. Foreign investment in the automotive sector has been strong.
Slovakia's economic growth exceeded expectations in 2001-05, despite the general European slowdown. Unemployment, at an unacceptable 15% in 2003-04, dropped to 11.4% in 2005, but remains the economy's Achilles heel. Slovakia joined the EU on 1 May 2004.