Research Detail
| Diving into Slovak competitiveness |
Diving into Slovak competitiveness In our brand-new report, we take a closer look at the competitiveness of the Slovak economy. By comparing labor productivity, capital formation, industrial advancement, and examining other structural issues, we will explore the strengths and weaknesses that influence the country's long-term potential. ou can find the in-depth analysis in the PDF report; here, we provide just a short summary. Slovakia is, in the global perspective, among the wealthiest countries in the world, belonging to the elite club of the European Union and the Eurozone. Despite the rise of fringe political movements, none of the major political parties question Slovakia's membership in the EU, the Eurozone, or NATO. GDP per capita has stagnated in recent years, and economic growth requires a new source - innovation and research. The positive aspect is that productivity continues to grow, albeit slower than wages. The labor shortage will be exacerbated due to demographic changes, and the simplest solution is to attract more foreign workers. Slovakia excessively burdens employers, which may act as a negative factor in investment decisions. For the future labor market, a prepared workforce is essential. Education reform is imperative. The positive news is that Slovakia is soon to undergo a major education reform The investment structure must shift more towards research and development. The role of the state is crucial in this regard. It is not just a spender but primarily tasked with creating an environment supporting innovation activity in the entire economy. The significance of the automotive industry is immense, and for now, it seems that the transition to electromobility in Slovakia is on the right track, given the massive investments. To support competitiveness, the state must focus on creating a transparent and predictable business environment, establish institutional and legislative support for research and innovation, and encourage entrepreneurial spirit among the youth. |
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| 2024/06/25 / Erste Group Research |
Diving into Slovak competitiveness In our brand-new report, we take a closer look at the competitiveness of the Slovak economy. By comparing labor productivity, capital formation, industrial advancement, and examining other structural issues, we will explore the strengths and weaknesses that influence the country's long-term potential. ou can find the in-depth analysis in the PDF report; here, we provide just a short summary. Slovakia is, in the global perspective, among the wealthiest countries in the world, belonging to the elite club of the European Union and the Eurozone. Despite the rise of fringe political movements, none of the major political parties question Slovakia's membership in the EU, the Eurozone, or NATO. GDP per capita has stagnated in recent years, and economic growth requires a new source - innovation and research. The positive aspect is that productivity continues to grow, albeit slower than wages. The labor shortage will be exacerbated due to demographic changes, and the simplest solution is to attract more foreign workers. Slovakia excessively burdens employers, which may act as a negative factor in investment decisions. For the future labor market, a prepared workforce is essential. Education reform is imperative. The positive news is that Slovakia is soon to undergo a major education reform The investment structure must shift more towards research and development. The role of the state is crucial in this regard. It is not just a spender but primarily tasked with creating an environment supporting innovation activity in the entire economy. The significance of the automotive industry is immense, and for now, it seems that the transition to electromobility in Slovakia is on the right track, given the massive investments. To support competitiveness, the state must focus on creating a transparent and predictable business environment, establish institutional and legislative support for research and innovation, and encourage entrepreneurial spirit among the youth. |
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Download PDF (640kB)
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