a
centrally planned economy to a modern market economy. The DZURINDA
government made excellent progress during 2001-04 in macroeconomic
stabilization and structural reform. Major privatizations are nearly
complete, the banking sector is almost completely in foreign hands,
and the government has helped facilitate a foreign investment boom
with business friendly policies such as labor market liberalization
and a 19% flat tax. Foreign investment in the automotive sector has
been strong. Slovakia's economic growth exceeded expectations in
2001-07 despite the general European slowdown. Unemployment, at an
unacceptable 18% in 2003-04, dropped to 8.6% in 2007 but remains the
economy's Achilles heel. Slovakia joined the EU on 1 May 2004 and
will be the second of the new EU member states to adopt the euro in
2009 if it continues to meet euro adoption criteria in 2008. Despite
its 2006 pre-election promises to loosen fiscal policy and reverse
the previous DZURINDA government's pro-market reforms, FICO's
cabinet has thus far been careful to keep a lid on spending in order
to meet euro adoption criteria. The FICO government is pursuing a
state-interventionist economic policy, however, and has pushed to
regulate energy and food prices.

GDP (purchasing power parity):

$110.2 billion (2007 est.)

GDP (official exchange rate):

$74.99 billion (2007 est.)

GDP - real growth rate:

10.4% (2007 est.)

GDP - per capita (PPP):

$20,200 (2007 est.)

GDP - composition by sector:

agriculture: 2.6%
industry: 33.5%
services: 63.9% (2007 est.)

Labor force:

2.654 million (2007 est.)

Labor force - by occupation:

agriculture 5.8%, industry 29.3%, construction 9%, services 55.9%
(2003)

Unemployment rate:

8.4% (2007 est.)

Population below poverty line:

21% (2002)

Household income or consumption by percentage share:

lowest 10%: 3.1%
highest 10%: 20.9% (1996)

Distribution of family income - Gini index:

26 (2005)

Investment (gross fixed):

25.7% of GDP (2007 est.)

Budget:

revenues: $34.34 billion
expenditures: $35.99 billion (2007 est.)

Fiscal year:

calendar year

Public debt:

35.9% of GDP (2007 est.)

Inflation rate (consumer prices):

2.8% (2007 est.)

Central bank discount rate:

4.25% (31 December 2007)

Commercial bank prime lending rate:

7.99% (31 December 2007)

Stock of money:

$26.17 billion (31 December 2007)

Stock of q