GDP (Million $) – 127.533 (IMF 2023)
GDP Per Capita ($) – 23.458
Growth Rate (%) – 1,3
Population – 5.437.000
Total Area (km2) – 49.037
Capital – Bratislava
Slovakia is a country in Central Europe that formed Czechoslovakia together with the Czech Republic until 1 January 1993 and became a member of the EU in 2004.
It is estimated that the population of Slovakia, which ranks 114th in the world with 5.4 million people in 2023, will be 5 million people in 2028.
In addition to the incentives provided by the country from EU funds, the investments of major automotive companies such as Volkswagen, Peugeot-Citroen, KIA and Jaguar Land Rover, which have made large-scale investments in the country, have been effective in the development of the Slovak economy. The GDP, which is estimated to be 128 billion dollars in 2023 according to current prices, is expected to be 136 billion dollars in 2024. (IMF-2023)
According to current prices, Slovakia is the 61st largest economy in the world among 196 countries as of 2023. [USA 1. (27 trillion dollars), Turkey 19. (1 trillion dollars)] (IMF-2023)
GDP, which is expected to increase by 1.3% in 2023 compared to constant prices, is estimated to increase by 2.7% in 2024. (IMF-2023)
According to current prices, Slovakia ranks 47th in the world with a per capita income of 23 458 dollars in 2023. [Luxembourg 1. ($132,372), Turkey 75. ($11,932)] (IMF2023)
Slovakia exported 107.7 billion dollars in 2022. The main export countries of the country are Germany, Czechia, Hungary and Poland. Türkiye ranks 18th in the country's exports with a 0.8% share.
The main products exported by the country in 2022 are; automobiles, parts and parts for road vehicles, monitors and projectors, telephone equipment, petroleum oils and oils obtained from bituminous minerals, electric power and new tires made of rubber.
Imports worth 112.4 billion dollars were made in 2022. The main importing countries of the country are Czechia, Germany, Poland and Austria. Türkiye ranks 21st in the country's imports with a share of 0.6%.
The main products imported in 2022 are; components and parts for road vehicles; telephone equipment, petroleum gases and other gaseous hydrocarbons, electrical power, automobiles, crude oil (petroleum oils and oils from bituminous minerals) and insulated wire cables.
INDUSTRY
The industrial structure of Slovakia has generally improved since the second half of the 20th century. Heavy industry has generally developed towards the coal mining, machinery manufacturing and steel sectors.
The most important sectors available today are automotive, electronics, machinery, chemistry and information technologies. In particular, the automotive sector has recently been renamed thanks to the investments made by important enterprises such as Volkswagen (Bratislava), Stellantis (Trnava, Groupe PSA -Peugeot,Citroen- after its merger with Fiat Chrysler Automobiles, FCA, in January 2021), Kia Motors (Zilina) and Jaguar Land Rover (Nitra).
In the field of machinery industry; machine tools, river vessels, automotive spare parts, white goods, etc. is produced.
AUTOMOTIVE INDUSTRY
The automotive industry has become an important driving force in the country's economic growth after the investments made by the four main automakers in the country. The automotive industry contributes to growth, especially with exports. The automotive industry has a share of 48% in the country's total industrial production, 48% in industrial exports, and 30.8% in total exports. Its share in the gross national product is 13%. 98% of the sector's production is exported to the world, primarily to the EU markets.
Slovakia ranks 20th in world automotive production and 7th among European countries. The Slovak Automotive Industry Association (ZAP) has announced that the car factories in Slovakia produced approximately one million vehicles in 2022, a decrease of 5 percent compared to the previous year. In this context, the association stated that Slovakia continues to be the world leader in automobile production, with a total of 184 automobiles produced per 1,000 people in the country last year.
Four major automaker companies operate in the country, and this number will rise to five with Volvo, which will produce electric vehicles in Kosice from 2026. These; Volkswagen in the capital Bratislava, Kia Motors in Zilina in the north of the country, Stellantis (PSA Peugeot Citroën) in Trnava near Bratislava, and the last investor is British Jaguar Land Rover, which came in 2015 and started production in 2018.
The most important advantages of Slovakia for the automotive sector are its geographical features and its proximity to automotive units in other countries. The country also uses the advantages of being an EU member in the automotive spare parts and by-products sectors. It is also an important manufacturer in terms of automobile safety equipment, vehicle care products, and post-production products. There are more than 350 sub-industry establishments in the country.
MACHINERY AND EQUIPMENT INDUSTRY
The sector of MEI in Slovakia represents one of the key pillars of the Slovak economy. It has a strong historical background and maintains its stable position in the Slovak industry. It is a sector of crucial importance, not only because of its contribution to the GDP and foreign trade balance, but also for its potential to create jobs and boost the overall employment.
The MEI in Slovakia is closely linked to the automotive industry, which is the highest accelerator of investments in Slovakia. Increasing volume of investments into the automotive industry provides significant opportunities for manufacturers in the MEI.
The MEI in Slovakia is not only connected to the automotive industry. There is also a variety of other industrial segments in demand of production capacities such as defence systems, aeroplanes, hydraulic systems & compressors, metal forming machinery, etc.
Slovakia's machinery and equipment industry is heavily export-oriented. The country exports a substantial portion of its manufactured goods to international markets, primarily within the European Union.
AVIATION INDUSTRY
Slovak aviation industry builds on an old tradition of Slovak inventions, such as a parachute and a helicopter. The old tradition of the aviation inventions lives on, through the prototypes of fastest ultralight aircraft, gyrocopter or an aeromobil — one of the most sophisticated prototypes of flying–car designed and developed in Slovakia. At present, more than 350 automotive suppliers represent a great potential for development of aviation industry when it comes to manufacture, design or R&D activities.
Slovakia has seen some growth in the field of aircraft maintenance, repair, and overhaul (MRO) services. Some companies provide maintenance services for both civil and military aircraft.
The aerospace manufacturing sector in Slovakia has been slowly growing, with companies involved in producing components for larger aircraft manufacturers. This includes manufacturing of various aerospace components such as parts for engines, airframes, and avionics systems.
At the present, Slovakia has 99 million Euro sales revenue, 32 million Euro added value and 1250 employees in the aviation industry.
IRON AND STEEL INDUSTRY
Slovakia has a history of industrial production, including iron and steel manufacturing. The iron and steel industry has been a significant sector in the Slovak economy, contributing to both employment and exports.
Slovakia has had several integrated steel plants that handle both the iron-making and steel-making processes. One of the most notable steel plants is the U.S. Steel Košice, located in the eastern part of the country in Košice. U.S. Steel Košice is one of the largest employers in Slovakia and has been a key player in the country's steel industry.
Steel products manufactured in Slovakia, including various types of steel sheets, coils, and plates, have been important export commodities. These products are used in various industries such as automotive manufacturing, construction, and machinery production.
The Iron & Steel Manufacturing in Slovakia industry is valued at €3.9bn and is ranked 11th in Europe in 2023 (of 18 total EU countries) and the 11th largest industry in Slovakia in 2023. The industry's rank (11th) has remained the same since 2018.
There are 8,316 people employed and 902 businesses, an increase of 14.2% from 2022, in the Iron & Steel Manufacturing in Slovakia industry as of 2023.
CONSTRUCTION INDUSTRY
The construction industry in Slovakia has been an important sector of the country's economy, contributing to infrastructure development, employment, and economic growth. The industry encompasses a wide range of activities, including residential, commercial, industrial, and civil engineering construction.
The construction industry in Slovakia is expected to shrink by 1.3% in real terms in 2023, owing to weak investor and consumer confidence amid rising interest rates, energy prices, construction materials prices and components, supply chain disruptions, and an uncertain global economic environment. According to the Statistical Office of the Slovak Republic (SOS), the average index measuring the construction material and component prices rose by 22.5% year on year (YoY) in 2022. This is expected to weigh on investor confidence, thereby holding back investments on non-critical construction projects over the coming months.
The Slovakian construction industry is expected to rebound at an average annual growth rate of 4.1% from 2024 to 2027, supported by investments in infrastructure, energy, and housing, aided by European Union (EU) recovery funds. In early February 2023, the EU endorsed a positive preliminary assessment of Slovakia's request for EUR709 million ($724 million) in grants, under the Recovery and Resilience Facility (RRF). The country’s RRF includes several investment and reform measures organized in 18 thematic components.
