Slovakia
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Slovakia

· General informations about the country
· Economic and social features
· Infrastructure
· SWOT analysis
· Basic economic pointers
· Investors
General informations about the country

Geography

Slovakia is an inland country, situated nearly in the heart of Europe. Within living memory, Slovakia was intersected by important transporting communications and commercial roads between Baltic and Adriatic Sea and between Black and North Sea.
Neighbouring countries and borders:

  • Hungary 669 km (The South)
  • Poland 547 km (The North)
  • Czech Republic 252 km (The West)
  • Austria 106 km (Southwest)
  • Ukraine 98 km (The East)
Slovakia takes a part of the Carpathian mountains, southly of the Carpathians Mts. lies Panónska basin, where Dunajská plain spreads along the river Danube and Východoslovenská plain in the east of country.
Surface of Slovakia is characterized by considerable level range. Lowlands take 40 % of the surface and highlands take 60 % of Slovakia. The lowest point (94 m) is in valley of the river Bodrog near the border with Hungary and the highest peak is Gerlach peak (2 655 m.).

Slovakia is situated in the northern mild climatic zone, which is characteristic by periodical changes of four seasons and temporary by influence of continental and oceanic climate, which causes drought, heat in the summer and frost in the winter. Average annual temperature moves from 5,5 C to 10 C.

Rivers

The biggest midleeuropean river Danube, which connects Slovakia with the Black sea flows from Austria. The longest slovak river is Váh – 403 km. There are many mountain lakes in Slovakia, especially in the High Tatras.
There are built many dams in Slovakia , most of them (19) on the river Váh. The most famous are Liptovká Mara, Zemplínska Šírava and Gabcíkovo that lies on the river Danube.
Slovakia is rich in mineral and thermal springs of high quality.

National parks
  1. National park High Tatras
  2. National park Pieniny
  3. National park Low Tatras
  4. National park High Tatras
  5. Slovak Paradise
  6. National park Small Fatra
  7. National park Big Fatra
  8. National park Muránska planina
  9. National park Poloniny
National park´s area takes 317 821 ha ( 6,5 % of slovak territory).

Natural resources

Slovakia is rich in sources of ceramic materials, limestones and white salt. There are brown coal mines and fractional sources of oil and natural gas.
Slovakia takes one of the first places in the world in sources of non – metallic minerals (magnesite, haloysite, quarsite, bentonite, white salt, asbestos, talc). It is also rich in cement and metallurgical limestone.

Territorial-administrative division

In 1996 the state administration was decentralized from central government to 8 regional administrations, which are divided into 79 local parts.
Regional administration and administration of towns are separated from a state administration.

Important towns:
Bratislava (pop. 428 672)
Košice (pop. 240 915)
Banská Bystrica (pop. 84 919)
Nitra (pop. 87 357)
Prešov (pop. 92 687)
Žilina (pop. 86 685)
Trnava (pop. 70 191)

Economic and social features

Slovakia is situated in the heart of Europe on the intersection of the west and the east. Except good transporting connection with neighbouring countries of European Union and candidate countries, Slovakia is also the base of trade with Ukraine and with other countries of eastern and southeastern Europe.

Slovakia has long history of business with Czeck Republic and Poland and the trade with Austria and Hungary increases. It has also many commercial connections with Russia, Ukraine, Romania, Bulgaria and with countries of Yugoslavia
After the Second World War Slovakia was industrialized. Industry of petrochemistry, electrotechnical industry, textile production, metallurgy, engineering industry and chemistry were developed.
After admission to EU in 2004 Slovakia is prepared to use its strategic location as a connection with united european market and to continue in development of the trade in the eastern and southern Europe.
Slovakia has also very good conditions for development of tourism. It has attractive environment and many historical attractions.

The industry

In keeping with a long tradition and high qualified work force, Slovakia has opportunity in these fields:

  • Automotive industry
  • High-technical industry
  • Engineering
  • Chemical industry
  • Information technologies
  • Wood processing
  • Services
  • Tourism
Export-Import

The balance sheet of international trade has reduced. The interest of export has increased and the interest of import has reduced.
The biggest part of export is export to European Union. Main sectors of slovak export are engineering, chemical industry, pharmaceutical, rubber industry and metallurgy.
Import represents a big part of structure of international trade and mainly includes import of machines, electric gears and vehicles including cars.

Capital costs

Growth of slovak economy caused also the growth of foreign capital costs, which increased most of all candidate countries in 2000.
In the first term of 2003 foreign capital got to 9,8 mld. Sk and it was about 8,3 mld. Sk higher as in the same period of last year.
The most important investors were Germany, Switzerland, Nederland and in term of sectors the biggest part of capital costs were invested to production and distribution of electricity, gas and water.

Foreign investors

The most important foreign investors in Slovakia are: Henkel, Lenovo, SOITRON, KNAUF Insulation, Kössler GmbH, Heineken, SONY Slovakia, Whirlpool, Gabor, Volkswagen, Peugeot, KIA Hyundai, IBM, DELL, Johnson Controls, SAMSUNG Electronics, Coca-Cola, Whirlpool, Swedwood, Henkel, Siemens, Heineken and many others.

Infrastructure

Transport infrastructure

Air cargo services

In Slovakia there are 6 international airports available for business and delivery flights situated: Airport of M.R. Štefánik Bratislava, Košice airport, Poprad airport, Sliač airport, Piešťany airport and Žilina airport.

  • Airport of M.R. Ĺ tefánik in Bratislava is the main and most significant airport of the Slovak Republic.
  • Airport Košice is the second important airport in the Slovak Republic. It derives from its eccentric position within whole Slovakia, absence of highway connection with Bratislava and weak competition of surrounding airports (Poprad, UĹľhorod)
  • Airport Sliac deals with flights provided by middle capatitive airplanes.
  • Airport Pieštany its service depends on the foreign demand of spa stays in Pieštany.
  • Airport Poprad shows, except regular airlines, the highest number of travellers in present. Especially during weekend days through winter touristic season.
Because of weak utilization of airport potention in Slovakia, part of travellers use international airports of neighbouring countries like Vienna, Budapest, Prague, Warsaw.

Railway freight

Transport services are realized on the railway tracks with length of 3 655 km in total. The tracks are integrated into networks of international corridors in prevalent majority and with their parameters they answer the international standards.
Scheme of railway network in Slovakia is represented by so – called triangle: Bratislava – Žilina, Žilina – Košice, Bratislava – Zvolen – Košice.
Into network of railroad tracks belong lines: C-E40, C-E52, C-E61 and C-E63 with length of 837 km.
Density of railway network 74,6 km / 1000 km2 overtakes states like e.g. Austria, Switzerland, France.
Railroad network of SR is connected with frontier crossings, through which international corridors traverse, in numbers: Ukraine – 2, Hungary – 7, Austria – 1, Poland – 3, Czech Republic – 7.
They are connecting Slovakia with the northwestern Europe, Balkan, Baltic and Greece.

Network of roads

In Slovakia, there is qualitative network of highways available, in the length of 370 km. It is a part of main european corridors:

Corridor No. IV: Berlin - Prague – Bratislava – Budapest – Istanbul
Corridor No. Va: Bratislava– Žilina – Košice – Ukraine
Corridor No. VI: Gdansk – Katovice – Žilina

For future there is new construction of highway network planned. It should be 659 km long in total.
The most important connection with transeuropean artery, that crosses territory of Slovakia is the north - southern artery in way Gdansk – Katovice – Žilina – Bratislava, branched towards Vienna and Budapest.
It is possible in present to use roads of I. class for transport of people and goods. They are as well part of international road corridors.

Ship transportation

Inland waterway is carried out on monitoring rivers: Danube, Váh, Morava and Bodrog with length of 256 km.
River Danube, that is a part of flowline of the Northern sea and the Black sea, makes up european transport corridor No. VII. with three public ports of SR built on its bank:
  • Port Bratislava (Region of Bratislava) on the international Danube flow provides services in transship of general and bulk cargo (coal, ores, manures, agricultural products etc.) and offers services in transshipment of liquid goods.
  • Port Komárno (region of Nitra) presents vantage connection of water, railway and road network. With its technological equipment and geographical position it is designed mainly for transshipment of loose dies, bulk material and agricultural products.
  • Port Ĺ tĂşrovo (region of Nitra) has character of public international port for personal naval and cartage transport.
Use of ship transportation in Slovakia is also possible on these corridors:

Corridor No. IV - Berlin/Norimberg – Prague - Budapest – Konstanca - Istanbul
Corridor No. V - branch A – Bratislava – Žilina – Košice – Užhorod
Corridor No. VI - Gdansk –Warsaw – Katovice – Žilina

Telecommunications

Telecommunication market in Slovakia is liberalized – except services of the public telecommunication net and public telephone net, which provides the Slovenské telekomunikácie, a.s.
In 2000 the company modernized the public telephone net and 70,41 % of telephone connection were digitally connected at the end of the year.
Services of cell telephone net provide two companies: Eurotel Bratislava, a.s. and Orange, a.s. Both of them provide a digital net GSM with frequency 900 MHz and 1800 MHz. 80% of territory is covered with this net what represents 98% of population coverage. Eurotel Bratislava, a.s. Also provides analog net NMT which covers 79% of the territory and represents 96% of population coverage.
SWOT analysis

Strong points

  • Adopting the single European currency Euro,
  • Stabilization of macroeconomic environment,
  • Bigger inflow of foreign capital cost,
  • Degrease of tax charge,
  • Increase of export to EU,
  • Low expenses for a work,
  • Disposable industrial infrastructure,
  • Disposable potention in the area of research and development,
  • Fast absorption of standards of quality in sector of big companies,
  • Potention for development of business in tertiary sector,
  • Potention for building technological parks and industrial zones in all region in Slovakia,
  • High rate of material production and rich tradition of trades-folk,
  • Premises for development of activities in the area of information technologies,
  • Qualified work force and high standard in the area of technical education,
  • Harmonization of legislation with EU,
  • Strategic position of SR in transport connection: the West - the East, the North - the South,
  • Net of airports in territory of SR,
  • Suitable climatic and land conditions for cultivating vegetables, fruits and crops,
  • Cultural and natural potention for development of tourism and baths.
Weak points
  • High unemployment,
  • High deficit of current account of balance of payments,
  • Low rate of added value in output,
  • Deficient development of capital market,
  • Undone restructuralization of industry and in enterprises,
  • Increase of social differences in society and slow forming of middle class,
  • High energetic, material and import seriousness of production,
  • Deficient utilization of existing production capacities,
  • Outworn technologic base,
  • Regional differences in qualified and flexible work force,
  • High finance charge and administrative barriers of business,
  • Low bulk of invested capital, especially in small and middle businesses,
  • High rate of unemployed and regional differences,
  • Low-developed integrated transport system,
  • Deficient connection of research and development with production.
Opportunities
  • Price stability and balanced rate of currency,
  • Reform of tax system,
  • Increase of added value of exported goods,
  • Degrease of payroll tax capacity of business subjects,
  • Strong bonds with European market,
  • Increase of inflow of foreign capital costs,
  • Development of information technologies in the industry and services,
  • Consolidation and development of capital a finance market,
  • Development of services in the sector of industry,
  • Development of services supporting tourism,
  • Disposal of administrative barriers of business,
  • Improvement of access small and middle enterprises to finances,
  • Development of industrial zones through domestic and foreign capital,
  • Utilization of scientific, research and production capacities for innovation,
  • Strategic geographical position of SR, international transport corridors crossing its territory,
  • Integration to transport structures of EU,
  • Development of ecological agriculture and ecologization of industrial production.
Threats
  • Deficient increase of competitiveness of Slovak producers,
  • Deficient reform of system of public finances,
  • Deficient effectiveness in degreasing of corruption,
  • Deficient upgrading of quality of labour market,
  • Brain-drain,
  • Absence of investment and own capital,
  • Slow modernization of production facilities and technologies,
  • Increasing economic competition in the world markets,
  • Dependance on import of strategic raw materials,
  • Slow tempo of reconstruction of production facilities and of inflow of technologies,
  • Low degree of support of research and development in business sector,
  • High response on the world economic cycles,
  • Deficient and uncompleted institutional system of support of small and middle businesses,
  • Deepening of social unbalance,
  • Low level of rights enforcement,
  • High prices of inputs including regulated prices.
Basic economic pointers

General features
Area
in km2		 Population
in 2008		 Density of population
/km2		 Level of urbanization
49 035 5 413 548 110 55,2


GDP-yearly growth in stable prices
  2006 2007 2008 1.Q 2009
% 11,7 10,4 7,6 -2,9


Unemployment (Statistical office of the SR)
  2007 2008 1.Q 2009
Level of unemployment (%) 11,0 9,6 10,5


Export – to selected countries in 1.Q 2009
  (%)
Germany 20,7
Czech Republic 12,4
France 8,7
Poland 6,9
Italy 6,0
Hungary 6,0
Austria 5,6
Great Britain 5,1
Netherlands 3,5
Spain 2,4
Belgium 1,9
USA 1,0
Other countries 19,8


Import – from selected countries in 1.Q 2009
  (%)
Germany 16,6
Czech Republic 11,5
Russia 9,1
Korea 6,4
China 6,0
Hungary 5,5
France 4,9
Poland 3,9
Italy 3,8
Great Britain 3,1
Austria 2,9
Spain 1,6
Other countries 24,7


Average monthly wage
Sector Index 2007 Index 2008 Index 1.-5. 2009
Industry 106,4 106,9 101,9
Constructions 106,9 107,7 102,7
Sale and service of vehicles 107,8 104,4 102,3
Wholesale
Retail
Hotels and restaurants 104,1 104,6 107,0
Real estates and rental 109,8 109,4 94,0
Transport and storage 108,1 107,2 103,1
Post and telecommunication 114,3 107,1 104,7


Earnings for products and goods
Sector Index 2007 Index 2008 Index 01.-05.2009
Industry 115,6 103,8 73,72
Constructions 108,2 116,4 83,46
Sale and service of vehicles 124,2 107,0 79,02
Wholesale 105,9 113,7 73,1
Retail 105,5 109,1 89,12
Hotels and restaurants 101,6 99,75 72,01
Real estates and rental 110,5 111,9 97,06
Transport and storage 106,4 111,7 84,14
Post and telecommunication 108,1 105,1 109,9


Foreign capital costs on 31.12.2008
FCC
(in mil. Sk)		 FCC
(in mil. EUR)
807 470 25 806


Structure of foreign capital costs in SR according sector
Sector On 31.12.2007
(in mil. EUR)
Industrial production 10 574,1
Production a distribution of gas and electricity 5 091,2
Banking and insurance 4 807,8
Wholesale, retail, repair of vehicles 2 168,4
Transport, storage and communications 1 437,1
Real estates, rental and commercial services 984,0
Minerals mining 345,4
Constructions 299,4
Hotels and restaurants 66,7
Health service and social welfare 56,0
Agriculture 49,9
Other services 80,7


Structure of FCC in SR according the country of investor
Country On 31.12.2008
Holland 5 140,6
Austria 3 676,6
Italy 3 495,7
Germany 3 344,7
Hungary 1 995,4
Czech rep. 1 985,4
Cyprus 1 278,5
Luxemburg 919,0
Korean republic 683,9
USA 682,2
Other countries 2 441,2

Investors

Name Region Town Country Sector
Coca-Cola Bratislava Bratislava USA Food
DELL Bratislava Bratislava USA IT services
Gabor Trenčín Bánovce n. Bebravou Austria Shue
Heineken Nitra Hurbanovo Holland Food
Henkel Bratislava Bratislava Austria Chemical
Holcim Bratislava RohoĹľnĂ­k Switzerland Constructions
IBM Bratislava Bratislava USA Informatics
KIA Hyundai Žilina Žilina Korea automobile ind.
MANITOWOC Košice Veľký Šariš France Engineering
Peugeot Trnava Trnava France automobile ind.
SOITRON Bratislava Bratislava USA IT services
SONY Nitra Nitra Japan Electrotechnical
TECO Žilina Trstená Taiwan Electrotechnical
VELUX Trenčín Partizánske Denmark Wood
Volkswagen Bratislava Bratislava Germany automobile ind.
Whirlpool Prešov Poprad USA Engineering
Yssel Nitra Palárikovo Holland Constructions

  Copyright 2003