Slovakia still lags behind the Czech Republic economically. But progress has been made

Euro. Illustron Smek.
| Photo: European Commission.

In the 1990s, Slovakia was in the middle of the EU countries in terms of purchasing power parity, and now we are at 80 percent. The Czech Republic started out equal, and when Czechoslovakia split, it was 80 percent of the EU average, and now it’s roughly equal to 90 percent, according to analysts at banking firm Slovensk Sporidia, which is the country’s weakest state. Austrian Erste Group Banking Group.

According to them, Slovakia has made progress, mainly thanks to new foreign investments and accelerated investment in technology after joining the EU in 2004. Over the past decade, Slovakia has grown economically, but not as fast as the EU; According to the bank’s economists, the Czech Republic has made less progress in this regard.

In recent years, the promise has stopped in practice, and the model based on these wages and dill technology has run out. They said that quality growth of the economy requires an economic policy aimed at enhancing digital and innovative capacity, two prerequisites for long-term growth.

According to the analysis, the structure of the Czech and Slovak economies is similar. In Slovakia, there is a strong position in the automobile industry – three automobile companies have factories in the country, and the fifth, Volvo Cars, announced in April of this year that it will build a pipeline for the production of electric cars at the entrance to Slovakia.

Both the Czech Republic and Slovakia have opened their economies to the world, but their mutual trade has been slowly retreating over the past 30 years. In the 1990s, mutual trade accounted for between 20 and 25 percent of all imports and exports, now it is about ten percent and it is bilateral, the analysts wrote.

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Compared to Slovakia, the Czech Republic has a higher reliability rating from rating agencies. Slovakia, unlike the Czech Republic, introduced the single European currency, the euro.

In the long term, Slovakia lags behind the EU and the Czech Republic in spending on research and development. According to my analysis, Bratislava spent less than one percent of GDP on this electricity, compared to two percent in Estonia and an EU average of 2.3 percent. Slovakia has long-term unemployment.

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