Economic success

Many observers consider the Slovak Republic to be the most attractive investment destination in the region. It is the fastest growing and most dynamic economy in Central Europe.

The recent radical and aggressive reform process covering areas of tax, the labour market, healthcare, the pension system, and public spending has been highly praised by international institutions and investors. Of particular importance is the new flat tax rate of 19% for both individuals and corporations. FREE Tax Guide here

Responsible government successfully maintained fiscal balance and the budget and current account deficits were reduced significantly. The budget deficit was reduced from 7.2% to 3.6% in just two years, and is expected to be further reduction to 2.9% by 2006.

Investment paradise

Foreign direct investment (FDI) has grown from US$ 2 billion to US$ 14 billion since 1999.

Main reasons for Slovakia's success in attracting foreign investment are investor-friendly business environment; strategic location in the heart of Europe, giving access to European, as well as Ukrainian, Russian and eastern markets; political stability; a well educated, highly skilled and multilingual labour force and low labour costs.

Main foreign investors are Germany, Austria, Netherlands, US, UK, Czech Republic, Italy; particularly in the manufacturing (automotive) and electronics, financial services, communication, precision engineering, utilities.

Investor confidence is extremely high. Over 90% of the current foreign investors in Slovakia have further expansion plans in the country.

Many other companies are ready to follow suit, expanding or transferring their Central European operations to Slovakia.

As a latest example, Hyundai chose Slovakia over Poland for its European production base, following the success of the already established Volkswagen and Peugeot-Citroen. Slovakia, by 2006, will have the highest per capita car production level of any country in the world.

 Economic indicators, Central Europe