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Country Forecast Slovakia April 2017

Country Forecast Slovakia April 2017

  • April 2017
  • ID: 1195104
  • Format: PDF

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Policy towards private enterprise and competition


2017-18: The anti-trust authority, Protimonopolny urad (PMU), more vigorously prosecutes cartels in public procurement, mainly in EU-funded projects, as well as in IT and other sectors. Government improves e-government services in healthcare.


2019-21: Reforms of the judiciary speed up courts and bankruptcy proceedings and improve law enforcement. Private partners are invited to help build a new hospital in Bratislava, the capital, and play a role in infrastructure investment.


Policy towards foreign investment


2017-18: Strategic partner sought to run the state-owned Bratislava airport. The government continues to offer foreign investors tax breaks and incentives.


2019-21: Investment by foreign firms already present in Slovakia continues to account for a large proportion of all foreign investment in the country, despite government efforts to invite new investors into high-tech sectors.


Foreign trade and exchange controls


2017-18: Western Europe remains the main export market. Support for euro membership remains relatively strong.


2019-21: Automotive exports increase their dominance of exports after the new Jaguar Land Rover plant launches production in late 2018. Economic ties with Asia and China will be developed.


Taxes


2017-18: Government maintains sectoral taxes for banks, insurers, energy and telecommunications firms, and imposes a new 7% dividend tax. Tax collection improves owing to sustained government efforts.


2019-21: Tax licences (a form of minimum income tax payment) are abolished. More loopholes are closed to improve tax collection. Payroll taxes remain high for average and above-average earners.


Financing


2017-18: The European Central Bank (ECB) keeps interest rates at all-time lows. The National Bank of Slovakia (NBS, the central bank) attempts to curb mortgage lending growth.


2019-21: Refinancing of old mortgages subsides as interest rates edge upwards. The local equity market remains small and illiquid. Large amounts of public and EU fund money are made available to technological start-ups.


The labour market


2017-18: Improved economic growth pushes the unemployment rate down to all-time lows, resulting in labour force shortages in economic centres. Government continues EU-funded job-creation schemes for disadvantaged job-seekers.


2019-21: Large industrial companies import workers. Vocational schools improve co-operation with the business sector.


Infrastructure


2017-18: The Bratislava motorway bypass is built as a public-private partnership project. New electricity-generating capacity comes on stream with the completion of two new blocks at the Mochovce nuclear-power plant.


2019-21: EU-funded upgrading of road and rail infrastructure continues. Spending on research and development remains low.



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