5.9% in 1997,
rates among the highest in Central and Eastern Europe. Inflation
dropped from 26% in 1993 to 6% annually in 1996-97, the lowest rate in
the region. Private activity now makes up more than two-thirds of GDP.
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. Continuing economic recovery in
western Europe should boost exports and production, but Slovakia's
position with foreign creditors and investors could suffer setbacks in
1998 if progress on privatization and restructuring stalls and if
domestic political problems continue to tarnish its international
image.

GDP: purchasing power parity-$46.3 billion (1997 est.)

GDP-real growth rate: 5.9% (1997 est.)

GDP-per capita: purchasing power parity-$8,600 (1997 est.)

GDP-composition by sector:
agriculture: 5.2%
industry: 39.4%
services: 55.4% (1996)

Inflation rate-consumer price index: 6% (1997)

Labor force:
total: 2.352 million
by occupation: industry 29.3%, agriculture 8.9%, construction 8.0%,
transport and communication 8.2%, services 45.6% (1994)

Unemployment rate: 12.8% (1997 est.)

Budget:
revenues: $5.7 billion
expenditures: $6.4 billion, including capital expenditures of $NA
(1996)

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: 3% (1996)

Electricity-capacity: 7.115 million kW (1995)

Electricity-production: 23.223 billion kWh (1995)

Electricity-consumption per capita: 4,698 kWh (1995)

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

Exports:
total value: $8.8 billion (f.o.b., 1996)
commodities: machinery and transport equipme