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1.1 Macroeconomic framework of the country and the region
1.1.1 Ratings of the Slovak Republic
The Slovak economy is generally considered to be a functioning market economy. The ability of the Slovak government to carry out the obligations is reflected in the ranking of prestigious rating agencies which have ranked Slovakia with stable or positive perspective at the investment level. According to the rating of the agency Standard and Poor’s, Slovakia is on the top of the V4 countries.| Standard and Poor´s | Moody´s | Fitch Ratings | |
| Liabilities in foreign currency | A (Stable) | A 2 (Positive) | A (Stable) |
| Liabilities in domestic currency | A (Stable) | A 2 (Positive) | A + (Stable) |
| Date of the change | December 10 2005 | January 12 2005 | October 11 2005 |
1.1.2 Inflation
The unstable development of consumer prices was caused by specific factors. The sharp rise of inflation in 2003 to the level of 8.5 % is a consequence of the completion of price deregulation of chosen commodities (gas, electricity, etc.) and of the introduction of unitary value added tax (VAT) at the level of 19 %. Despite these facts, the core inflation development remained positive (2.3 % in June 2004), which was a precondition of positive future development. This assumption was confirmed in 2005, when the inflation rate reached the level of 2.7 %.Consumer inflation
-> celková inflácia = General inflation; -> jadrová inflácia = Core inflation
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 |
| Inflation rate in % | 12 | 7.3 | 3.3 | 8.5 | 7.5 | 2.7 |
1.1.3 Unemployment rate
According to the selection finding of the Bureau of Statistics of SR, the unemployment rate is gradually decreasing. The unemployment rate decreased from 19.2% in 2001 to 17.4% in 2003. This development has been influenced by the strong economic growth above all. The prediction of the National Bank of Slovakia awaits further decreasing trend of the unemployment rate. The following map shows the unemployment in individual districts.
Source : Central Bureau of Labour, Social Affairs and Family
1.1.4 Average wages
In Slovakia the average monthly wages rises continually. The rise of the wages was recently significantly influenced by the inflation rate, which means that the rise of wages followed the rise of prices. However, considering the current positive development of the inflation, it is possible to anticipate a lower pressure on the rise of the wages in the following years.| YEAR | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 |
| Average wages SKK/month | 11,430 | 12,365 | 13,511 | 14,365 | 15,825 | 17,274 |
| Average wages EUR/month | 301 | 325 | 356 | 378 | 416 | 447 |
| Rise of wages in % | 6.5 | 8.2 | 9.3 | 6.3 | 10.2 | 9.2 |
1.1.5 GDP growth in fixed prices
The GDP growth reached the level of 4.2 % in 2003, which is a positive result mainly in comparison with the growth recorded in the EU countries. According to the Bureau of Statistics of SR, the GDP growth was 6.1 % in 2005, which is the greatest growth in the Central Europe. In 2006, the expected GDP growth is at the level of 6.3 % (according to IMF) and in 2007 at the level of 6.5 % (according to NBS). In the recent years, the GDP growth was influenced mainly by the great external demand, the domestic consumption and the investments play an important role nowadays. Regarding these facts, it is possible to consider the growth of the Slovak economics for sustainable.| YEAR | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 |
| GDP growth in SR in % | 2 | 3.8 | 4.6 | 4.5 | 5.5 | 6.1 |
| GDP growth in EU in % | 3.9 | 1.9 | 1.1 | 1.1 | 2.3 | 1.4 |
1.1.6 Interest rates development
Average interest rates (from the state of business credits in SKK, %)
1.1.7 Slovak currency development
Slovak currency in relations to EUR and to USD (daily closing values)
1.1.8 Membership of SR in international organizations :
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