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The Slovak Republic is an advanced transition country, which implemented the body of EU market regulation prior to its EU accession in 2004 and which has benefited from integration into the EU internal market through substantial capital inflows and growing trade shares with the rest of the EU.
Unlike in several other economies of the central Europe region, capital flows into the Slovak banking system have been limited, resulting in sound funding structures, and overheating and destructive asset bubbles have been mostly avoided. At the same time, foreign direct investment flows into export-oriented industries have been limited to a small number of cyclical industries. As a result, Slovakia remains highly exposed to adverse external developments. Also, regional disparities remain large and are correlated with long-term unemployment. Unemployment remains very high for the country as a whole, despite moderate GDP growth since the 2009 crisis. Insufficient and narrowly-based R&D spending also remains a challenge.
The EBRD and the Slovak Republic
As Slovakia is an advanced country expected to graduate during the CRR4 period (2011-2015), the Bank’s activities will focus on a limited number of priorities during the upcoming strategy period. The Bank will provide support in the core areas where transition challenges remain, recovery from the financial crisis still requires support, and where reforms can be accelerated to improve the competitiveness of the country as a member of the eurozone. The priorities in the next strategy period include:
Last updated 30 November 2012