Can Slovakia see a light at the end of the tunnel?

The situation of Slovakia’s export-dependant economy aggravates due to slumping demands on the main markets in Western Europe. Especially in the manufacturing industry production has declined by more than a quarter, in the car-manufacturing industry, central pillar of Slovakia’s export industry, it has dropped by 44,3 per cent. On the other hand a positive development is recorded for computers, electronic and optical products, achieving an increase of more than 24 per cent (data: July 2009).

In April the former CEE-model student recorded a dramatic decline of 38,4 per cent in industrial contracts. Increasing unemployment (about 11 per cent) and a predicted GDP of minus 5,4 per cent for 2009 make the state provide measures to stimulate economic activity which, among others, include investing in infrastructure. So far nobody dares say whether recession has already bottomed out.

Despite the crisis the Austrian Federal Economic Chamber (WKO) still recommends Austrian enterprises to continue engaging in Slovakia. According to them chances arise from the infrastructure projects financed by the Slovakian Government. Also engaging in fields like alternative energy, passive housing and organic food seems promising. Basically the WKO recommends ”keeping to it and doing all the preparatory work now to be prepared for the economic upswing”.