The Slovak economy grew by 9.4% in QIII 2007, according to the Slovak Statistical Office. This means 0.4% higher growth than in the same quarter of 2006.
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The unemployment rate in Slovakia was 7.99% at the end of 2007, (according to the Central Office of Labour, Social Affairs and Family). That is a decrease by 1.4% compared to the end of 2006.
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The average nominal wage in Slovakia grew by 6.8% y/y to SKK 19,514 (588 euro) in QIII 2007. Real wages increased by 4.2% (Slovak Statistical Office).
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In 2007 foreign direct investment in Slovakia doubled (compared to 2006) to 1.28 billion euros, according to Sario (Slovak Investment and Trade Development Agency).
This came from 64 investments creating 14,738 new jobs. Sario is working on 146 new projects this year worth around 4 billion euros. Most of the investors come from Germany, US, UK, Belgium, South Korea, Austria and Italy.
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Slovakia’s 2007 budget deficit dropped below 2.5% of GDP (preliminary data from the Ministry of Finance of SR), which was considerably lower than the 2.9% predicted last year.
The Slovak economy ended 2007 with a deficit of SKK 23.53 billion (704.43 million euros), which was SKK 14.86 billion (444.85 million euros) less than budgeted. The economy improved by SKK 8 billion (239.52 million euros) y/y mainly thanks to higher tax revenues. (The 2006 deficit was SKK 31.68 billion.)
In 2008 the deficit is expected to be below 2.3% of GDP.
The country is therefore well on track to meet the conditions for adopting the euro in 2009, as planned.
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In 2008 Slovakia will be preparing for a new currency.
According to surveys 90% of Slovaks believe that the country will adopt the euro in January 2009 as planned. The predictions of economists and analysts support this. (According to INEKO foundation 75% of economists expect a successful 2009 euro adoption.)
The slovak crown (SKK) will remain in the European exchange rate mechanism ERM II until a final conversion rate is set (to be known in July). The exchange rate is expected to be SKK 32 to 33 for 1 euro. Some analysts predict an even better rate.
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A survey by GfK shows that Slovakia has the 4th highest internet penetration in CEE; 42% of Slovaks use the internet.
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