The Slovak Republic overview

Cityscape at night

In the Slovak Republic we focus on:

Deepening financial intermediation and support for SMEs. The EBRD’s engagement in the financial institutions sector is focussed on further enhancement of the availability of credit finance to small and medium-sized local enterprises as well as to small municipalities with an emphasis on deepening financial intermediation to SMEs in the less developed regions of the country. The EBRD also seeks to expand programmes implemented through commercial banks providing funding and expert assistance for small energy efficiency and renewable energy investments. We are also pursuing opportunities with financial intermediaries on equity and mezzanine financing.

Supporting investments in infrastructure, energy security and energy efficiency. The EBRD is supporting the development of viable financing structures to secure long term financing for projects in the commercial infrastructure sector through co-operation with other IFIs and private sector participants. We are promoting the diversification of energy supply with a focus on renewable energy sources and energy efficiency throughout sectors to enhance energy security, reduce energy intensity and meet EU environmental targets.

Support cross border co-operation and investments of leading local entities in other countries of EBRD operations in order to enhance their regional presence.

As well as being a country where the EBRD works, the Slovak Republic is also an EBRD donor.  In 2015 the Slovak Republic approved financing totalling about €3.1 million for assignments, including €1 million each to the Sustainable Resource Initiative Policy Dialogue Framework and the Municipal and Environmental Infrastructure TC Framework Facility.  It also participates in two multi-donor funds including the Western Balkans Investment Framework and the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund. For the Slovak Republic it is particularly important to develop the potential for energy efficiency in the region, which will contribute to energy security and economic competitiveness.
 
The EBRD’s latest strategy for the Slovak Republic was adopted on 13 November 2012

Current EBRD forecast for the Slovak Republic’s real GDP growth in 2017 3.2%

Current EBRD forecast for the Slovak Republic’s real GDP growth in 2018 3.5%

The Slovak Republic was the fastest growing economy in the CEB region in 2016. Last year’s GDP grew by 3.3 per cent, largely propelled by strong household consumption and net exports. Admittedly, the latter was effectively a result of relatively weak imports, which came from poor public sector investment demand, mostly affected by the slow start of the EU funds utilisation from the new EU budget.In 2017, investment growth will likely accelerate, underpinned by strong corporate credit growth and high firms’ capacity utilisation rates. The expansion of production plants in the automotive industry, with the new Jaguar car plant planned to be operational from 2018, is expected to positively affect exports, including outside the EU. The tightening labour market, together with rising wages, will provide an additional boost to domestic demand, though emerging skill-mismatches and continued aging are expected to weigh on growth potential in the medium term. In 2017, GDP growth is forecast to reach 3.2 per cent, accelerating to 3.5 per cent in 2018.

 

Slovak Republic in the EBRD’s 2015-16 Transition Report