After a transformational decline at the initial stage of reforms (during 1990–93, the country’s GDP fell by almost 1/4), the Slovak economy has been restoring the progressive dynamics of development since 1994; the level of the last pre-reform year (1989) was surpassed in terms of GDP in 2001 (by 9%). In 2001, Slovakia’s GDP amounted to 62 billion US dollars, GDP per capita – 4200 euros, or 49% of the EU average. According to cheeroutdoor, the growth of production and the increase in labor productivity are taking place against the backdrop of a reduction in employment – from 2.5 million people. in 1989 to 2.1 million people. in 2002 and unemployment growth – from 13% in 1993 to 18.5% in 2002. Inflation since 1995 has fallen below the double-digit mark, in 2002 it was 3.5%; from the 2nd floor. 1990s government activity in the field of pricing (increasing regulated prices) has a significant impact on its dynamics. Economic growth is largely determined by the dynamic development of the service sector: its share in GDP increased in 1993–2001 from 41 to 65%, while the share of industry decreased from 29.2 to 26.3% and agriculture from 6.6 to 4.9 %. In 2001, the service sector accounted for 57% of the total number of people employed, 29% for industry, 6% for agriculture, and 8% for construction. Slovakia has significant industrial potential. In the structure of industrial production, key positions are occupied by mechanical engineering, metallurgy and metalworking, the food industry, electrical engineering and the chemical industry; the pulp and paper and textile industries are significant. The mining industry accounts for less than 1% of industrial production. The largest enterprises: the Slovnaft petrochemical plant in Bratislava, the chemical plant in Shalya, East Slovak Iron and Steel Works in Kosice, heavy engineering plants in Martin and Dubnice nad Vahom, an aluminum smelter in Žiar nad Hronom, and many others. Electricity generation 27.5 billion kWh (2000); OK. 50% of the electricity generated in the country is produced on the basis of nuclear power plants in Jaslovsk-Bohunice and Mochovce. Due to the protracted investment recession in the economy, the slow pace of privatization, and the low inflow of foreign direct investment (FDI, their total volume for 1990-99 amounted to only 2.1 billion US dollars), the structure of the Slovak industry did not change in the 1990s. noticeable changes: the recovered industrial growth was mainly due to traditional industries. A new privatization round that began in Slovakia in 1999 during which strategic enterprises of the Slovak economy were presented for sale to foreign investors, intensified FDI inflows and restructuring processes in the field of material production: the amount of FDI received by Slovakia in 2000-02 reached almost 4 billion US dollars; the share of FDI in GDP increased from 2% in 1997–99 to 8.5% in 2000–01. In terms of FDI in the Slovak economy, the leaders are Germany (26% of their total volume by the beginning of 2002), the Netherlands (23%) and Austria (18%). Of the total amount of FDI accumulated by the beginning. 2002, approx. fifty%. The agrarian transformations of the 1990s, during which the denationalization and socialization of land and the material and technical base of agriculture were carried out, ensured a dominant position in land ownership, land use and agricultural production of the private sector: its share in the gross agricultural output reached 98% in 2002. The total number of private entrepreneurial entities that emerged on the basis of reorganized agricultural cooperatives and state farms in 2001 amounted to 7.2 thousand, of which individual farms – 79%, cooperatives – 10%, limited liability partnerships – 9%. The area of agricultural land is 2.4 million hectares, of which 1.5 million hectares are arable. On the fertile lowlands, cereals (wheat, rye, barley, corn), industrial crops (oil plants, tobacco, sugar beet) are grown; horticulture and viticulture are developed. In the southern regions, mainly pigs, dairy cattle and poultry are bred, in the mountainous regions – sheep and beef cattle. Slovakia has an extensive network of railways and roads. In 2001, the length of railways was 3.7 thousand km (approx. 28% – double-track lines, 40% – electrified sections), highways – 38 thousand km (motorways of international importance – 18 thousand km, of which 288 km are express trails). In the domestic freight turnover, the share of rail transport is 58%, road transport – 40.0% (2001). Navigation is only on the Danube, the ports are Bratislava and Komarno. There are 17 airports. The role of Slovakia in the transit of Russian oil and gas to the countries of Western and Southern Europe is great: the southern branch of the Druzhba main oil pipeline and the system of transit gas pipelines pass through its territory (in 2000, the length of the main gas pipeline route with branches to the Czech Republic and Austria was 2013 km, the transit of Russian gas through the territory of Slovakia – 90 billion m3). From con. 1990s carried out at the expense of foreign loans and subsidies from EU funds, intensive modernization of railways and rolling stock, construction of motorways and high-speed routes; The telecommunications services sector is actively expanding due to the inflow of FDI: in 1997-2001, the number of telephone lines increased by 12%, the number of cellular subscribers – 11 times, incl. with an Internet connection – 3.5 times. Mobile communication services and the Internet were used in 2000-01 by 23 and 17% of the population, respectively. Tourism plays a significant role in the country’s economy: a variety of natural landscapes, a rich cultural tradition, a developed network of hotels, health resorts and sports facilities provide ample opportunities for recreation, treatment and travel. Slovakia is famous for its balneological resorts, located on mineral and thermal springs (Piešťany, Trencianske Teplice, etc.), mountain climatic and ski resorts in the High Tatras (Strbske Pleso, Tatranska Lomnica) and Small Tatras (Jasna). The state budget deficit fluctuated in 1997-2001 within 5.0-6.5% of GDP, in 2002 it amounted to 4.5% of GDP. The public debt, insignificant at the start of the reforms, rose to 29.7% of GDP in 1997 and to 44.1% of GDP in 2001. on the income of legal entities – from 40 to 25% and individuals – from 12-42 to 10-38%. Further modernization of the taxation system is associated with a decrease in direct and an increase in indirect taxes while maintaining the amount of tax revenues to the state budget at the achieved level. The reform of the social security system is at the initial stage of implementation. With independence in 1993, Slovakia moved to its own national currency – the Slovak krone, fixing its exchange rate against a basket consisting of the US dollar (40%) and the German mark (60%); since 1996 introduced its full convertibility for current transactions. Monetary policy is aimed at reducing inflation and interest rates. In 1993-98, the price stabilization strategy was based on a fixed exchange rate of the national currency with a gradual expansion of the corridor of exchange rate fluctuations from 1.5 to 7.0%. On January 1, 1998, the Central Bank of Slovakia switched to a managed floating exchange rate regime and the use of a revised consumer price index as a benchmark for inflation. The total authorized capital of the banking system amounted to 1 January 2003 52, 0 billion SKK, of which 38.5 billion accounted for the commercial banking sector, which includes 18 banks and 2 branches of foreign banks. As a result of the reorganization and privatization of 3 largest state-owned banks carried out in 2000-01, the average capital adequacy ratio in the banking sector increased from 1 in 1999 to 20% in 2001, the share of classified loans decreased from 40 to 13%, in the total authorized capital of the commercial banking sector, the share banks with participation of non-residents exceeded 90%. Luxembourg (34% by January 1, 2003) and Austria (32%) are leading in foreign investment in the banking sector. The volume of domestic bank loans to the private sector amounted to at stake. 2001 35% of GDP, household deposits – 62% of GDP. The stock market in Slovakia is underdeveloped; capitalization of the stock market – 3% of GDP (2002). In a 1998 UN report, dedicated to the ranking of living standards in 175 countries of the world, Slovakia took 42nd place. Market reforms were accompanied by increased social inequality: at stake. 1990s the income ratio of the bottom 20% to the top 20% was 12 to 31. Average monthly nominal wage SKK 13,511 (approx. US$130), old-age pension 48% of the average wage (2002). The number of cars per 1,000 inhabitants increased from 211 in 1997 to 240 in 2001, and the number of mobile phone subscribers increased from 35.7 to 399.2. The Slovak economy is characterized by a high degree of openness to the foreign market: the total value of exports and imports in 2001 amounted to 160% of GDP. On horseback 1990s more than 85% of Slovak exports and 70% of imports were realized on a duty-free basis (under free trade agreements or a customs union). In 2001, Slovakia’s foreign trade turnover amounted to 26.7 billion US dollars, with a trade deficit of 2.1 billion US dollars; The EU and CESSE countries accounted for 56% and 26% of Slovakia’s foreign trade turnover, respectively. Leading trading partners: Germany (25.8% of S.’s foreign trade turnover in 2001), the Czech Republic (15.8%), the Russian Federation (8.4%), and Italy (7.5%). Export structure: machinery, equipment and vehicles – 39.5%, processed products classified by materials – 26.8%, various finished products – 14.3%, chemical products – 6.9% (2002). Import structure: machinery, equipment and vehicles – 38.2%, processed products classified by materials – 19.1%, mineral fuels – 13.4%, chemical products – 10.7%, various finished products – 6.9 % (2002). The mutual trade turnover of Slovakia with the Russian Federation in 2001 amounted to 2, 3 billion US dollars. OK. 90% of Russian exports to Slovakia are fuel and raw materials. Slovakia mainly exports machinery, equipment and consumer goods to the Russian Federation.
