WIIW Current Analyses and Country Profiles, No. 10 (May 1997)

The Economic Situation and Recent Economic Trends in the Slovak Republic

(by Friedrich Levcik and Zdenek Lukas)
 

SUMMARY

The shock of 'shock therapy' was particularly severe in Slovakia: Overall production declined sharply because of the restrictive monetary and fiscal policies, as well as decreasing domestic and foreign demand. A massive industry contraction followed the shock. But with strong growth in exports, GDP revived in 1994 and 1995, as domestic demand gradually took over as the driving force of growth. In 1996, largely closed to outside investors, Slovakia still reported the highest economic growth among the CEECs.
 

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