Slovakia
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Ease of trading across borders
Importing a standard container of goods into Slovakia requires:
Introduction
The Slovak economy is considered an advanced economy, with the country dubbed the "Tatra Tiger". Slovakia transformed from a centrally planned economy to a market-driven economy. Slovakia adopted the Euro currency on 1 January 2009 as the 16th member of the Eurozone. Slovakia is an attractive country for foreign investors mainly because of its low wages, low tax rates and well educated labour force. In recent years, Slovakia has been pursuing a policy of encouraging foreign investment.
Economic snapshot (% annual growth rate)
| 2015 | 2016 | 2017-20 | |
|---|---|---|---|
| GDP | 3.6 | 3.4 | 3.6 |
| Export of goods and services | 7 | 4.2 | 6.2 |
| Import of goods and services | 8.2 | 3.8 | 5.7 |
| Inflation | -0.3 | -0.2 | 1.4 |
| Current account balance (% of GDP) | -1.3 | -1.0 | 0.3 |
| Population | 0.1 | 0.0 | 0.0 |
| Source: IMF, World Economic Outlook Database, Oct 2016 |
Economic outlook
GDP grew by 0.4% in Q4 2013, with growth driven by both net trade and domestic demand as consumer and business confidence improved significantly in Q4. Growth should accelerate further in 2014, helped by the gradual pick-up in foreign demand. However, a weak labour market will remain a drag on growth this year as unemployment is expected to decline only modestly this year.
Trade outlook
Foreign trade is important to Slovakia’s economy. Crude oil, natural gas, machinery, and transportation equipment are Slovakia’s main imports. Exports include machinery, chemicals, fuels, steel, and weapons. The Czech Republic, Austria, Germany, and Russia are Slovakia’s leading trade partners. The upward trend in import business was stimulated by increased deliveries for the automobile industry as well as the electronic home entertainment sector, along with growing purchases of crude oil.
Cultural tips
- Punctuality is taken very seriously
- Avoid scheduling meetings on Friday afternoons as many Slovaks live outside of the cities
- Business is often conducted slowly so maintain patience in meetings
SWOT analysis
| Strengths Political & economic stability. Skilled and inexpensive labour. |
Weaknesses External demand largely from the Eurozone. |
| Opportunities Slovakia's strategic geographical location - major European transit corridors, connecting the Western and Eastern parts of Europe. |
Threats Housing market bubble. Number of foreign owned banks. |
Slovakia's trade with the UK
Sector segmentation growth
Sectors to watch:
- sector
- sector
Manufacturing
- manufacturing
- manufacturing
Fastest-growing exporters into Slovakia
| Rank | 2012 |
|---|---|
| 1 | South Africa |
| 2 | Hong Kong |
| 3 | Cambodia |
| 4 | India |
| 5 | Singapore |
| 6 | Vietnam |
| 7 | Turkey |
| 8 | South Korea |
| 9 | Hungary |
| 10 | Poland |
Total merchandise trade - Leading import partners
Opportunities for UK businesses
Slovakia has an established premium automotive sector, representing over 40% of its overall industry. With a high number of technology centres, opportunities exist in machinery & precision engineering, metallurgy & metal processing, electronics, chemistry and pharmaceuticals.
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