Slovakia Economic Outlook
A manufacturing-heavy economy:
Slovakia, with a GDP of around $120 billion, has one of the most industrialized economies in Central Europe. The country is a key player in automotive manufacturing, with per capita car production among the highest in the world. Slovakia’s export-driven growth model has delivered solid economic expansion, but in 2023, the economy faced headwinds from weak external demand, high inflation, and slowing industrial output.
Automotive dominance and trade:The automotive sector is Slovakia’s economic backbone, with major carmakers like Volkswagen, Kia, and Stellantis operating large production facilities. Exports account for over 80% of GDP, with Germany, the Czech Republic, and Poland as key trading partners. However, the country’s heavy reliance on car production makes it vulnerable to disruptions in global supply chains and shifts in demand for electric vehicles. Slovakia has also been working to expand its renewable energy and digital industries.
Challenges:Slovakia’s economic challenges include labor shortages, regional disparities, and dependence on external markets. Inflation peaked above 14% in 2022, driven by rising energy costs and supply chain disruptions, before moderating in 2023. The country also faces a productivity gap compared to Western Europe, and innovation levels remain relatively low. Additionally, Slovakia is dealing with political instability, which has slowed policy reforms and EU fund absorption.
Slovakia’s economic outlook:Economic growth in Slovakia is expected to pick up as inflation stabilizes and demand for Slovak exports recovers. However, diversifying the economy beyond automotive manufacturing will be essential for long-term resilience. Investments in digitalization, R&D, and infrastructure are needed to sustain competitiveness, while political stability will be crucial for maintaining investor confidence.
Slovakia's Macroeconomic Analysis:
Nominal GDP of USD 141 billion in 2024.
Nominal GDP of USD 141 billion in 2024.
GDP per capita of USD 25,917 compared to the global average of USD 10,589.
GDP per capita of USD 25,921 compared to the global average of USD 10,589.
Average real GDP growth of 2.4% over the last decade.
Average real GDP growth of 2.4% over the last decade.
Sector Analysis
In 2022, services accounted for 56.5% of overall GDP, manufacturing 21.5%, other industrial activity 20.0%, and agriculture 2.0%. Looking at GDP by expenditure, private consumption accounted for 58.9% of GDP in 2023, government consumption 20.1%, fixed investment 19.6%, and net exports 1.4%.International trade
In 2023, manufactured products made up 89.6% of total merchandise exports, mineral fuels 3.5%, food 4.5%, ores and metals 1.5% and agricultural raw materials 0.7%, with other categories accounting for 0.2% of the total. In the same period, manufactured products made up 81.0% of total merchandise imports, mineral fuels 8.7%, food 6.5%, ores and metals 2.6% and agricultural raw materials 0.9%, with other goods accounting for 0.3% of the total. Total exports were worth USD 106.80 billion in 2024, while total imports were USD 107.20 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.4% in the decade to 2024. To read more about GDP growth in Slovakia, go to our dedicated page.
Fiscal policy
Slovakia's fiscal deficit averaged 2.9% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 7.8% in the decade to 2024. For more information on Slovakia's unemployment click here.
Inflation
Inflation averaged 3.4% in the decade to 2024. Go to our Slovakia inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Slovakia monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Slovakia
Annual GDP growth ended 2024 on a stronger footing due to a sharper rise in total consumption. Turning to Q1 2025, economic growth likely lost steam, and available data supports this forecast. Economic sentiment remained pessimistic in January–March, and rising inflation due to tax hikes likely weighed on private consumption; retail sales nearly flatlined in January, easing from Q4’s rise. Moreover, a pause in gas supply from Russia depressed industrial production in January. On the flip side, goods exports rose in January for the first rise in more than a year. In politics, Prime Minister Robert Fico restored his fragile parliamentary majority in March after internal coalition disputes briefly cost him control of the chamber. Meanwhile, U.S. President Trump recently announced 25% import tariffs on cars and car components from 2 April, boding ill for Slovakia’s automotive sector.Slovakia Economic Forecasts
Projections out to 2034.57 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 24 expert analysts.
Want to get insight on the economic outlook for Slovakia in the coming years? FocusEconomics collects projections out to 2034 on 57 economic indicators for Slovakia from a panel of 24 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Slovakia economy. To download a sample report on the Slovakia's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.