IMF Staff Country Reports

Slovak Republic: 2019 Article IV Consultation-Press Release; Staff Report

Publication Date:

July 12, 2019

Electronic Access:

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Summary:

Leveraging its location and low-cost skilled labor, Slovakia has attained a very high level of integration with the global value chains, which has proved pivotal to exports growth and income convergence with the European Union. After half a decade of robust growth, the Slovak economy is decelerating. With rising trade tensions and a turning economic cycle, several vulnerabilities are coming to the fore. High dependence on exports combined with a concentrated export structure makes Slovakia particularly vulnerable to external developments. On the domestic front, a prolonged period of double-digit mortgage credit growth and declining bank profit margins have made households and the financial sector susceptible to labor and property market downturns.

Series:

Country Report No. 2019/220

Subject:

Banking Expenditure Exports Financial institutions Housing prices International trade Labor markets Mortgages Prices Public debt