Slovakia

Report
SLOVAKIA
Ideal Investment & Business Destination
Slovakia – Growing Heart of Europe
I
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Source: SARIO, 2010
Establishment:
Official name:
Area (km2):
Population:
Capital:
Member of:
1st January 1993
Slovak Republic
49,035
5,379,000
Bratislava
OECD, WTO, NATO,
EU, Schengen area
Official currency:
EURO location
Strategic
Official Language:
Slovak
with
Government:
Parliamentary
great
export potential
democracy
Election term:
4 years
Neighbours:
Austria, Czech
Republic, Hungary,
Poland, Ukraine
Time zone:
GMT + 1hour
GDP Prediction for 2012
Macroeconomic Overview
12
10
GDP growth
6
1.8%
IMF
2.4%
MF SR
2.5%
WB
3%
IMF
2
3,1%
National Bank of SR 3.1%
0
-6
OECD
GDP Prediction for 2013
4
-4
1.2%
National Bank of SR 2.1%
8
-2
EC
2002
2003
2004
2005
European Union
2006
2007
2008
2009
2010
2011
Slovak Republic
2008
2009
2010
2011
Real GDP growth
6.4%
-4.7%
4%
3.3%
Labour productivity growth
3.8%
2.7%
2.2%
-
HICP Inflation
4.6%
1.6%
0.7%
4.1%
Unemployment
7.7%
11.4%
14.4%
13.5%
723
744,5
769
786
Average monthly gross salary (€)
Source: International Monetary Fund, Eurostat, Slovak Statistics Office, Central office of Labour, Social Affairs and Family
WB
1.5%
OECD
3.6%
MF SR
2.7%
OECD
4.4%
Slovakia: Fastest Growth in Eurozone, 2012FF
Slovakia
1,20
Estonia
1,20
1,00
Malta
0,80
Finland
Austria
0,70
Luxemburg
0,70
Germany
0,60
0,50
Ireland
France
0,40
-0,10
Slovenia
Belgium
-0,10
-0,50
Cyprus
-0,90
Netherlands
-1,00
Spain
-1,30
Italy
-3,30
Portugal
Greece
-4,40
-5,00
-4,00
-3,00
Source: European Commision, February 2012
-2,00
-1,00
0,00
1,00
2,00
1st Rank in CEE in DOING BUSINESS 2012 !
Methodology
80
72
70
Starting a business
59
60
48
50
Construction permits
62
64
51
40
30
Registering property
20
10
Paying taxes
1
0
Singapore
Slovakia
Hungary
Bulgary
Poland
Czech
Republic
Enforcing contracts
Protecting investors
Closing business
Trading across borders
Getting credit
Source: World Bank Group – Doing Business Report 2012
The Doing Business project
provides objective measures of
business regulations and their
enforcement across 183
economies and selected cities at
the subnational and regional level.
Romania
Why Invest in Slovakia: Top Reasons
Strategic Position with Export Potential
300 million
of consumers in
radius of 1,000 km
Moscow
London
Berlin
Kiev
Paris
600 million
Rome
of consumers in radius
of 2,000 km
Zdroj: World Resources Institute
Istanbul
Eurozone Member – One of the few from CEE
€ Euro
since 1st January 2009
EURO IMPLEMENTATION IMPACT:




Source: SARIO, 2012
Limitation of Foreign Exchange Risk
Lowering Transaction Costs
Growth in Foreign Trade
Increased Financial Stability
Simple and Fair Taxes
19% Flat Tax Rate
Corporate Income Tax
Personal Income Tax
Value Added Tax - VAT
0%
19%
20%
Dividend tax
Inheritance and Gift Tax
Real Estate Transfer Tax
Repatriation of profits
100%
Source: SARIO 2012
Low Labour Cost & High Labour Productivity
Gross monthly salary
989 €
Slovakia reaches
the highest labor productivity
24 319CZK
Czech Republic
825 €
3 399,52 PLN
Poland
786 €
Slovakia
762 €
213 054 HUF
Hungary
472 €
1 936 RON
Romania
328 €
642 BGN
Bulgaria
GDP (in PPS) per hour worked as compared to EU15 (100)
Source: Eurostat 2011
Data for 2011
Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romania
exchange rate (as of 3 April 2012)
Regional Differences in Wages
Average gross monthly wage level in economy in Slovakia in
2011 reached 786 EUR(2,2% increase pa)
707 €
608 €
687 €
726 €
652 €
735 €
1 001 €
662 €
Source: Central Office of Labour, Social Affairs and Family, 2012
Average unemployment level
in Slovakia in 2011 reached
13.5 %
Education in Slovakia
6,75%
15,68%
40,39%
In TOP 500
37,17%
of world universities ranking
No education
Number of Universities:
Elem entary school
Number of Students in 11/12:
Secondary General School
Graduates in 2011:
Secondary Vocational School
University education
Source: The Institute for the Information and the Prognosis in the Education, 2012
35
71 092
204 158
Dominating Sectors of Slovak Republic
High-Tech Services:
Knowledge Intensive
Creative, movie, TV
industry and ICT
Source: SARIO, 2012
Scientific research
and development
(biotech, medical,
engineering etc.)
High-Technology:
Manufacturing
Pharmacy
Computer,
electronic and
optical products
Air and
spacecraft
industry
Dominating Sectors of Slovak Republic
Medium-High Technology: Manufacturing
Chemistry
Source: SARIO, 2012
Armament
industry
Electrical
equipment
Machinery
equipment
Automotive
industry,
supplier sector
Other
transport
equipment
Medical and
dental
instruments
Slovakia´s Success Stories
Source: SARIO, 2012
Success Stories & FDI Inflow to Slovakia
Country
of Origin
Investor
USA
US Steel, Emerson, DELL EMEA
Centre of Excellence, Whirlpool,
IBM International Services Centre,
HP European IT Operation Centre,
Johnson Controls R&D Centre, AT&T,
Accenture Technology Solutions,
Getrag Ford (Deutschland),
Honeywell, Amazon
million EUR
30 000
27 000
24 000
21 000
18 000
15 000
12 000
9 000
China
Lenovo
6 000
Taiwan
AU Optronics, ESON, Foxconn,
Delta Electronics
3 000
Germany
Siemens, Volkswagen, T-Systems,
Continental
Japan
Sony, Panasonic, Yazaki, Mitsui
Sumitomo
Korea
Samsung, KIA Motors, Hyundai
Mobis
Inward FDI position (million EUR)
FDI inflow per year incl. reinvested profit (million EUR)
FDI inflow per year (million EUR)
2009
2008
2007
2006
2005
2004
2003
2002
2001
Source: NBS, SARIO, 2012
2000
PSA Peugeot Citroen, Alcatel R&D
1999
France
0
Bilateral trade
Development of bilateral trade between Slovakia and Greece
(in thousands €)
2007
2008
2009
2010
2011
1-7/2012
Export
262 451
302 137
270 015
177 529
148 744
89 027
Import
86 858
84 577
105 807
91 585
88 525
56 325
Turnover
349 309
386 714
375 822
269 114
237 269
145 352
Balance
175 593
217 560
164 209
85 944
60249
32 702
I 2008 - the peak of the trade and our exports
I 2009- slight decrease due to ongoing global financial and
I
I
economic crisis
2010 – annual decrease of 21%
2011, 2012 - downward trend in trade, mainly due to the
decrease of our exports, but still highly positive trade balance
for Slovakia (our exports highly exceed imports) .
Main trade commodities
I Slovak export to GR
I - the highest export turnovers were in TV sets, cars
I - followed by plastics, rubber and articles thereof; paper,
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paperboard and articles of paper pulp; metal and metal
products (including iron, steel and copper)
- increase in export of other commodities: wood, tires,
telecommunication equipment, audio equipment, cosmetics, furniture,
printing materials, artificial fertilizers, pumps, metal pipes, office
equipment, musical instruments, plastic products, household
appliances, commercial glass, electrical machinery, yarn and so on.
- more than 70 commodities with volume of over 100 thousand €.
Greek import to SR
- aluminum ores and concentrates have long been the most
important commodity in our import from Greece (35% of total
imports)
- Second place - market products, especially cutlery and knives.
- other commodities: pharmaceuticals, textile products, fruits, nuts,
vegetables, alcohol, cosmetics, polymers, etc.
- Overall, more than 30 items with the volume over 100 thousand
Euros.
Insight into Investment Incentives
Eligible Projects
 Industry
 Shared Service Centers
 R&D Centers
 Tourism
Eligible Costs
ELIGIBLE ARE COSTS OF:
 LAND
 BUILDINGS
NEW MACHINERY & TECHNOLOGY EQUIPMENT
 LICENSES & PATENT RIGHTS
OR
 WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS
State aid in regions:
Bratislava:
Western Slovakia:
Central Slovakia:
Eastern Slovakia:
0%
40%
50%
50%
SARIO Services
From providing
General services & information to all subjects interested in
FDI in Slovakia
 Tailor-made solutions for potential investors
exploring Slovakia such as
 Best Location for Your Investment
 Best Location for Your Expansions

Through

Assistence in STATE AID application process for investments
into:
 INDUSTRY
 SHARED SERVICE CENTERS
 R&D CENTERS
 TOURISM

Support foreign trade via match-making & subcontracting

AFTERCARE services - for established foreign companies
To
Contact: www.sario.sk
Governmental
Agency:
Services
Free of Charge
Thank you for your attention!
Roman Hlobeň
Address:
Deputy Head of Mission
Embassy of the Slovak Republic
4,G. Seferi Str., Paleo Psychico, 154 52 Athens
tel. 210 6771 980
fax. 210 6776 761
[email protected]

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