CURRENT ECONOMIC PERFORMANCE
2016 EPI score
The Slovak Republic’s economic performance has been held back by sluggish demand in the Eurozone and the effects of the EU-Russia sanctions. In 2016, the EPI projects the Slovak Republic to have a score of 88.5%, or a solid C+ grade.
Since 2009 crisis, when EPI was at D level, the economic model of the country shifted from export-oriented (primarily to Germany) to more domestic demand-driven. In 2016, Slovakia’s GDP growth of 3.6% is a sign of solid economic recovery. This is due, in part, to a particularly strong domestic demand and an increase in government spending.
The budget ballooned to 7.9% of GDP in the 2009 recession but is projected to narrow to 2.6% in 2016. The government follows EU budget rules and will keep the deficit below the 3% limit.
The main economic drag on Slovak’s EPI score is its unemployment. It’s expected to falls slightly to 11.1% in 2016 and to 10% by 2020. Still, this unemployment level is below the historic averages for Slovakia of about 15%.
Inflation is small and in line with other Eurozone economies. This reflects the effects of lower commodity prices and slow recovery in the rest of the Eurozone.
By 2020, the 5-Minute Economist projects Slovakia’s EPI score to remain roughly at the same levels, around 89%, still C+ level. Economic growth will continue to be positive but is unlikely to accelerate further. Inflation will likely start picking up once lower commodity price effects fade out. This negative effect would be offset by slightly lower unemployment levels and lower budget deficits.
ECONOMIC PERFORMANCE HISTORY
EPI COMPONENTS PERFORMANCE HISTORY
EPI DATA FOR SLOVAK REPUBLIC
|Year||Inflation Rate (%)||Unemployment Rate (%)||Budget Deficit as a Percent of GDP (%)||Change in Real GDP (%)||Raw EPI Score (%)||Change From Previous Year||Raw EPI performance|