Slovak Republic

International Monetary Fund. European Dept.
2019 IMF Staff Country Reports  
Leveraging its location and low-cost skilled labor, Slovakia has attained a very high level of integration with the global value chains, which has proved pivotal to exports growth and income convergence with the European Union. After half a decade of robust growth, the Slovak economy is decelerating. With rising trade tensions and a turning economic cycle, several vulnerabilities are coming to the fore. High dependence on exports combined with a concentrated export structure makes Slovakia
more » ... cularly vulnerable to external developments. On the domestic front, a prolonged period of double-digit mortgage credit growth and declining bank profit margins have made households and the financial sector susceptible to labor and property market downturns.
doi:10.5089/9781498325127.002 fatcat:7azoa6fbcbeyjeh7qdv4tvlaxq