The Slovak Republic overview

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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 with about €16 million in donor contributionsThe Slovak Republic has been an important contributor to energy efficiency and municipal infrastructure projects in the Central Europe & Baltics Region, as well as the Caucasus, Turkey and the Balkans. The Slovak Republic has also contributed to a number of Policy Dialogue and Legal Transition projects, and established a dedicated fund to support the Slovak Sustainable Energy Finance Facility, which has played an important role in financing sustainable energy projects through increased financial intermediation. The Slovak Republic also participates in two multi-donor funds including the Western Balkans Investment Framework and the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund.

 
The EBRD’s latest strategy for the Slovak Republic was adopted on November 2017
 

Slovak Republic's policy response to the coronavirus crisis

The EBRD is monitoring Slovak Republic's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

Current EBRD forecast for the Slovak Republic’s real GDP growth in 2020 -6.0%

Current EBRD forecast for the Slovak Republic’s real GDP growth in 2021 7.0%

The economy registered a slowdown from 3.9 per cent in 2018 to 2.4 per cent in 2019, largely driven by shrinking exports. With regard to the coronavirus outbreak, the country’s deep integration into global value chains, especially in the automotive industry, will weigh heavily on output, at least in the short term. In April 2020, the country's four carmakers – Volkswagen, PSA Groupe, Jaguar Land Rover and Kia Motors – temporarily stopped production due to disrupted supplies of inputs, lower demand and concern about the health of workers.
 
Car manufacturing, including smaller domestic suppliers, accounts for almost half of industrial production and 47 per cent of total exports from the Slovak Republic. The low diversification of the Slovak manufacturing is a particular risk factor, given the disrupted supply chains and a possible drop in demand for cars, particularly in the light of a massive damage to the transport sector. The government has adopted 31 measures to support the economy, and redirected €1.25 billion of EU funds to crisis response. We expect output to fall by 6.0 per cent in 2020 before recovering strongly in 2021, by 7.0 per cent.

SLOVAK REPUBLIC IN THE EBRD'S 2019-20 TRANSITION REPORT

 

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