PERCEPTIONS of the business environment in Slovakia worsened during the third quarter of 2011, according to a survey conducted by the Business Alliance of Slovakia (PAS).
Its Business Environment Index is now recording a value of 89.2 points, representing a decrease of 1.35 percentage points in comparison with the previous survey, PAS reported on its website.
The value of the index is now lower than 90 points for the first time in 10 years.
PAS attributed the drop in the perception of the business environment to the negative effects of the crisis and insufficient government activity to deal with it as well as ongoing barriers faced by businesses.
The most significant drop in the index was registered in the business leaders' perceptions of the political system. Compared to the same period last year this aspect decreased by 7.59 percentage points to 38 points.
“The drop relates to the current political situation which has a direct effect on the stability of the economy as well as the business environment,” PAS stated, adding that one of the most negative aspects influencing the mood of business is instability in political decisions.
The second most significant drop was registered in the area of enforceability of laws and inadequate functioning of the judicial system, which fell to 18.8 points. Reliability and financial discipline of trading partners also dropped to 73.7 points.
On the other hand, business leaders praised the recent amendment to the Labour Code, with its rating increasing by 3.35 percentage points to 69.3 points.
The second most positive change in the business environment was registered in the regulation of foreign trade, which rose to 164.4 points.
Operation of certain state institutions such as cadastral offices and tax offices were also perceived better.
14. Nov 2011 at 0:00 | Compiled by Spectator staff