Slovak economy and Ukrainian refugees suffer from wasted potential, report says

Economy went from pandemic crisis to energy crisis, say analysts.

EU finances should be a key driver of forecast 1.5 percent y-o-y growth of the Slovak economy this year.EU finances should be a key driver of forecast 1.5 percent y-o-y growth of the Slovak economy this year. (Source: SME archive)

The Slovak economy could have grown by much more than it did in 2022 had Russia not invaded Ukraine, according to new analysis.

Instead of the 1.7 percent growth registered last year, it could have expanded around 3 percent, analysts at Slovenská Sporiteľňa, Slovakia's biggest bank, have said.

SkryťTurn off ads
Article continues after video advertisement
SkryťTurn off ads
Article continues after video advertisement

“Despite the fact that war is now conducted in a fundamentally different way than in the past, with new weapons, modern technologies or in the online space, one thing remains the same - the effects on people, society, and the economy are terrifying,” analysts Matej Horňák, Marián Kočiš, and Mária Valachyová, said.

SkryťTurn off ads

They said the main consequences of the war for the Slovak economy were felt in the form of increased energy prices, adding that "the economy shifted from the pandemic crisis to the energy crisis, and the long-awaited post-corona economic recovery was definitely swept from the table.”

Energy continues to matter

However, the analysts pointed out that Slovakia and the EU are making significant advances in developing energy independence from Russia which should help create greater macroeconomic stability and lower exposure to the effects of the current crisis.

They added that although energy prices are currently far below highs of the summer months, this effort must continue to ensure complete stability.

“We need to build new capacity, look for alternative suppliers and continue to invest in energy savings,” the analysts wrote. “Three-digit gas prices should now be definitively history.”

SkryťTurn off ads

Wasted Ukrainian HR resources

The report also addressed the influx of thousands of refugees from Ukraine to Slovakia and the effects on the local labour market.

Latest data shows approximately 15,000 Ukrainian refugees have found a job in Slovakia - approximately one quarter of all 18-64-year-old refugees who have arrived in the country. Most of them have found manual labour work.

"Both Ukrainians and the Slovak economy suffer from wasted potential, as people fleeing the war often also have university qualifications,” the report said.

EU money - one patch for two holes

The bank says EU finances should be a key driver of forecast 1.5 percent y-o-y growth of the Slovak economy this year.

While much of the money allocated to “green” solutions was presented as part of an effort to mitigate climate change, in the current situation it is likely to serve as “one patch for two holes” – efforts for greener and sustainable growth, but also for the European Union’s energy self-sufficiency, the analysts said.

Top stories

Playstreets for kids festival at Mudroňova elementary school

3 things to do in Bratislava for free in the next seven days

Visit an International Choir Festival or Playstreet for kids this weekend

6 h
Vrakuňa’s citizens presented apples washed in water with leaked toxins at the protest in 2016.

Chemical time bomb in Bratislava’s Vrakuňa keeps ticking

The state is failing to solve leaking chemical waste dump.

31. may
Jupiter (centre) and its Galilean moons: from left Ganymede, Io, Europa and Callisto. Juice with deployed antennas and arrays is in the bottom right.

From Košice to Ganymede: Slovak engineers are leaving their mark in space

Slovaks are active participants in two ongoing space missions.

20. may
Action store in Zvolen, central Slovakia.

Dutch discount retail chain Action lures with ‘treasure hunt’ experience

Six Action stores already open, more in pipeline, firm says.

7. jun
SkryťClose ad