Positive international financial performance has led Standard & Poor's
to raise its rating of the National Bank of Slovakia's foreign
currency debt to just one step below investment grade. Although Slovak
economic performance continues to be impressive, many warning signs of
possible danger ahead have been raised. Aggregate demand has surged in
the form of increased personal and government consumption. At the same
time that the budget deficit is growing, the money supply has been
rapidly increasing, which could apply upward pressure on inflation.
The trade and current account deficits both are mounting as imports
soar and exports sag. Perhaps most troubling, Slovakia continues to
have difficulty attracting foreign investment because of perceived
political problems and halting progress on restructuring and
privatization. The government projects 6.4% growth in 1997 and 5% in
1998. Continuing economic recovery in western Europe should boost
exports and production, but Slovakia's image with foreign creditors
and investors could suffer setbacks in 1997 if progress on
privatization and restructuring stalls.

GDP: purchasing power parity - $42.8 billion (1996 est.)

GDP - real growth rate: 7% (1996 est.)

GDP - per capita: purchasing power parity - $8,000 (1996 est.)

GDP - composition by sector:
agriculture: 5.4%
industry: 39.9%
services: 54.7% (1995 est.)

Inflation rate - consumer price index: 5.5% (1996 est.)

Labor force:
total: 2.538 million
by occupation : industry 29.3%, agriculture 8.9%, construction 8.0%,
transport and communication 8.2%, services 45.6% (1994)

Unemployment rate: 12% (1996 est.)

Budget:
revenues: $5.3 billion
expenditures : $5.6 billion, including capital expenditures of $NA
(1995)

Industries: metal and metal products; food and beverages; electricity,
gas, coke, oil, and nuclear fuel; chemicals and manmade fibers;
machinery; paper and printing; earthenware and ceramics; transport
vehicles; textiles; electrical and optical apparatus; rubber products

Industrial production growth rate: 2.8% (1996 est.)

Electricity - capacity: 7.12 million kW (1994)

Electricity - production: 23.6 billion kWh (1994)

Electricity - consumption per capita: 4,400 kWh (1995 est.)

Agriculture - products: grains, potatoes, sugar beets, hops, fruit;
hogs, cattle, poultry; forest products

Exports:
total value: $8.1 billion (January-November 1996)
commodities : machinery and transport equipment 18.7%