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Country Forecast Slovakia June 2018

Country Forecast Slovakia June 2018

  • June 2018
  • ID: 1697255
  • Format: PDF
  • The Economist Intelligence Unit

Summary

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Policy towards private enterprise and competition


2018-19: The anti-trust authority, Protimonopolny urad (PMU), more vigorously prosecutes cartels in public procurement.


2020-22: Reforms of the judiciary speed up court and bankruptcy proceedings, and improve law enforcement. Private partners are invited to help to build a new hospital in Bratislava, the capital, and play a role in infrastructure investment.


Policy towards foreign investment


2018-19: The government continues to offer foreign investors tax breaks and incentives.


2020-22: 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


2018-19: Western Europe continues to be the main export market. Support for euro membership remains relatively strong.


2020-22: Automotives 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


2018-19: Government maintains sectoral taxes for banks, insurers, and energy and telecommunications firms, and imposes a new 7% dividend tax. Tax collection improves owing to sustained government efforts. Tax licences (a form of minimum income tax payment) are abolished.


2020-22: More loopholes are closed to improve tax collection. Payroll taxes remain high for average and above-average earners. The government increases them further by adopting the annual settlement of pension levies.


Financing


2018-19: The National Bank of Slovakia (NBS, the central bank) attempts to curb mortgage lending growth.


2020-22: Banks remain in good shape. 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


2018-19: 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 jobseekers.


2020-22: Large industrial companies import workers. Vocational schools improve co-operation with the business sector.


Infrastructure


2018-19: 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.


2020-22: Private telecom operators roll out fifth-generation (5G) networks. Passenger rail transport is partially liberalised. EU-funded upgrading of road and rail infrastructure continues. Research and development spending remains low.


Technological readiness


2018-19: Robot intensity and automation increase further as firms respond to capacity constraints.


2020-22: The government will encourage foreign investors to set up electric car plants and production units for electronic battery and other car parts in the country.



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Country Forecast Slovakia April 2017

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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, ...

  • Slovakia
  • Automotive
  • Research And Development
  • Industry analysis
  • Gross Domestic Product
  • Foreign Direct Investment

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