Why is Slovakia losing competitiveness?

The almost absolute dependence of Slovakia on the automotive industry remains its Achilles’ heel.

(Source: Courtesy of VW SK)

Slovakia’s competitiveness keeps dropping. The latest World Competitiveness Yearbook ranks the country at 55th place, down four positions compared to the previous year.

“This means that compared with neighbouring countries we are losing attractiveness in terms of business development,” Zdenko Štefanides, chief economist at VÚB bank, told The Slovak Spectator. “From the long-term view this may have a negative impact on the inflow of investments, the potential growth of the economy and thus also the growth of citizens’ living standards.”

Economists and analysts are calling on the government to reform the education system, reduce red tape, make public administration more effective, take firmer control over public finances, reduce the tax burden and improve the enforceability of the law.

“Such changes will not only gradually bring a better position to Slovakia in rankings but primarily a positive stimulus for the economy itself and the business environment,” said Martin Vlachynský, analyst of the Institute for Economic and Social Studies (INESS) think tank.

The Economy Ministry points out that the rankings reflect the subjective opinions of managers and that it has been adopting measures to improve the business environment. But these will reflect only in future rankings.

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Get daily Slovak news directly to your inbox

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

A government with ĽSNS: How likely is it and what would it mean?

Threat of split for any party in coalition with extremists.

Marian Kotleba

Police detained ex-general prosecutor Trnka

He has been charged with abuse of authority.

Former General Prosecutor Dobroslav Trnka, who works at the General Prosecutor's Office, is to be heard by the police in the 2011 Gorilla Case.

Are the records of Slovak car industry getting a bitter undertone?

Automotive industry calls for measures to keep it internationally competitive.

Groupe PSA Slovakia plant in Trnava.

Government sets a cap to state expenses

It will affect the new cabinet.

Ladislav Kamenický