(Last updated: 19 Apr 2012)

Country overview

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Over the past 20 years, the Slovak Republic has made a successful transition from a centrally planned economy dominated by heavy industry to an open market driven by a steadily growing services sector.

As a member of the EU, with an advantageous location in the centre of Europe, an advantageous cost structure and well-qualified workforce, the Slovak Republic is an attractive destination country for foreign direct investment. It has a flat 20 per cent tax. Prior to EU accession in 2004, the Slovak government harmonised its laws and regulations with those of the EU.

Since the Slovak Republic entered the EU, the range of trade and investment opportunities has been growing. supported by ongoing development of infrastructure (roads, railways, engineering, housing), growth of living environment sustainable production (automotive, precise engineering) and development of services (telecommunications, banking, public, health).

There are increasing opportunities for Australian business in:

• Services
• IT (smart card applications, e-government, e-business)
• Automotive industry (components and spare parts, R&D)
• Advanced manufacturing
• Health and biotechnologies
• Infrastructure

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

The Slovak Republic is a parliamentary republic with legislative power vested in a unicameral parliament which holds responsibility for most areas of government policy. The parliament is made up of 150 deputies elected for four-year terms. The head of government is the Prime Minister, who is appointed by the President and is accountable solely to the parliament.

The Slovak Republic became a member of the OECD in 2000, NATO in March 2004 and the EU in May 2004.

Trade relations and statistics

The Slovak Republic is one of Australia's smaller trade and investment partners.

A Double Taxation Agreement and the bilateral Agreement on Trade and Economic Cooperation provide the legal framework for Australia’s commercial relations with the Slovak Republic.

QBE Insurance is the biggest Australian business operation in the Slovak Republic. Australian company Bronx International is in partnership with a Slovak company, Kovozink Dobsina, to produce a galvanising plant.

The Australian company Crown Energy is carrying out a uranium survey in the Slovak Republic, while the Perth-based company GB Energy was granted uranium exploration licences in November 2007.

Howe Leather has a manufacturing facility in Kosice, Eastern Slovakia, producing leather seats for luxury motor vehicles.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.