Slovakia posts GDP growth of 14% for the last quarter 10.3% for the year

Slovakia’s economic growth in the last quarter of 2007 increased from 9.4% in the third quarter to a surprising 14.1%. Although a small part of this increase was caused by one-off excise tax income related to increasing stock of tobacco products created due to the expected increase of excise tax on these products.

Euro-adoption proceeding according to plan.
The Slovak central bank chief -Ivan Sramko- said on Thursday the crown's conversion rate to the euro should reflect fundamentals, boosting the currency as analysts took thecomments to mean the switchover level would be strong.

Slovakia wants to adopt the euro in 2009 as the first ex-Communist country with a floating exchange rate and it expects the conversion rate to be set in June or July if it is judged ready to join the single currency zone.

"In principle, what is sought for is the real equilibrium rate which means an exchange rate that will not fundamentally change the conditions in the economy," Sramko told reporters onsidelines of an economic seminar.

The crown jumped one percent against the euro after Sramko'scomments as the market saw them as a signal the NBS may want to see a stronger currency before the euro entry level talks.

Investment pours into Slovakia, the ireland of the 00es?




The Slovak economy improved its position by five places in the economic freedom chart and ranked 35th according to the result of an annual survey conducted by the US organization The Heritage Foundation in cooperation with The Wall Street Journal, and its Slovak partner, the F. A. Hayek foundation.



The Japanese company, Sony, has stated that it has serious interest in further investments in Slovakia. It plans to establish a logistic and distribution centre to provide direct deliveries to Slovakia and European markets including Germany, the UK, Ukraine, Italy and Scandinavia.

According to the Minister of Economy, Jan Pociatek, Slovakia should not have any problems with meeting the inflation related Maastricht criterion. “Everything is under control. I do not foresee any unexpected developments regarding Slovak inflation compared to the Euro-zone,” he said speaking to Reuters before a meeting of EU Ministers of Finance. Slovakia’s plan to meet the budget criterion was on the agenda of the meeting.
The Chairman of the Slovak Chamber of Commerce and Industry (SOPK), Peter Mihok, signed a protocol on accession to the Declaration of Social Commitment to Adopt and Use the Euro in the Slovak Republic.
On January 1 broadband internet penetration was 17.24% in Slovakia.

The cabinet plans to decrease the public finance deficit below 2% of GDP, which is lower than the original target of 2.3% stated Prime Minster, Robert Fico during a cabinet meeting held in Brezno. “It is likely that the deficit in 2008 will be around 2% or below. Our ambition is to decrease the deficit below 2% of GDP,” said Fico. The Prime Minister also stated that the 2007 fiscal deficit is expected to be 2.4 to 2.5% of GDP and will be safely below the 2.9% limit that is required for euro adoption.

The Slovak crown strengthened and the exchange rate fell below 33.00 SKK/EUR.

sony slovakia


Electronics giant Sony (Japan) is interested in expanding its investment base in Slovakia to include a logistics and distribution centre that will also supply European markets and Ukraine, informed the Economy Ministry.
By building the new centre the concern plans to replace some of the centres in Central or South-east Europe where the production capacity doesn't match the concern's current needs.
Sony representatives say they chose Slovakia as the most suitable country not only because of its position and Sony's good experience so far, but mainly because of its realistic chance to adopt the euro as early as January 2009.

Sony has been operating in Slovakia through its production plant in Trnava (producing TV sets and components) since 1996. Another Sony plant in Nitra launched its production in October 2007.