The volume of private investment in Slovakia is reported to exceed the European Union average by some 5-7 percentage points, comprising a 25-percent share of Slovakia's GDP compared to an average GDP share among EU countries of 18 percent.
However, it is arguable whether these investments are having the desired effect on the national economy, economist Viliam Páleník, from the Slovak Academy of Sciences (SAV), told the TASR newswire on April 13.
He added that it is not clear if these investments are effective enough to boost the living standards of Slovaks in the future. "It seems that they only slightly affect economic growth, which should be higher in the presence of such massive investment volumes," Páleník said.
He thinks that this may be caused by the nature of the incoming foreign capital – mainly large-scale investments – but also by business conditions in Slovakia. "The private sphere here doesn't work according to strict economic criteria," said Páleník. According to the economist, the most serious problem which dilutes the effectiveness of investment in Slovakia is corruption. As for the fact that quite a number of investments in Slovakia are of a long-term nature, Páleník says this is no coincidence. "It's become a main trait of the economy," he said.
Source: TASR
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
