1 January 1993, Slovakia has continued the difficult transformation
from a centrally controlled economy to a modern market-oriented
economy. Macroeconomic performance improved steadily in 1994 and
1995 - with 4.8% and 6% growth, respectively. But privatization
progressed only in fits and starts. Strong export performance
boosted growth in both years, with consumption and investment
rebounding. Unemployment fell to 12.8% in November 1995, the lowest
level since mid-1993, and inflation dropped from 26% in 1993 to 7.5%
in 1995. The federal government deficit fell from 7% of GDP in 1993
to less than 2% in 1994-95, as growth boosted revenues. Positive
international financial performance 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. The trade and current
accounts are both in surplus, and foreign currency reserves held by
the central bank have climbed to $3.5 billion. Foreign debt of $4.6
billion - about the same as Romania's - is the lowest in Central and
Eastern Europe and the second lowest per capita. Bratislava made the
Slovak crown convertible for current account transactions on 1
October 1995. Slovakia continued to have difficulty attracting
foreign investment, however, because of perceived political
uncertainty and vacillations in privatization policy. The government
as well as the OECD projects 5% growth in 1996 and 1997.

GDP: purchasing power parity - $39 billion (1995 est.)

GDP real growth rate: 6% (1995 est.)

GDP per capita: $7,200 (1995 est.)

GDP composition by sector:
agriculture: 6.7%
industry: 47.6%
services: 45.7% (1993 est.)

Inflation rate (consumer prices): 7.5% (1995 est.)

Labor force: 2.484 million
by occupation: industry 33.2%, agriculture 12.2%, construction
10.3%, communication and other 44.3% (1990)

Unemployment rate: 13% (1995 est.)

Budget:
revenues: $6.1 billion
expenditures: $6.4 billion, including capital expenditures of $NA
(1995 est.)

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: 7.8% (January-August 1995)

Electricity:
capacity: 6,300,000 kW
prod