The Slovak economy remains strong. Employment has reached a record high, and unemployment is at its lowest level since 1993. Short-term growth prospects are good. Thanks to sustained economic growth, almost 4% on average in the last two decades, living standards have converged towards the OECD average, and public debt has declined in relation to GDP. Export-led expansion has been driven by continuing inward investment in the car industry, strong integration into global value chains and resulting improvements in labour productivity. Growth has spilled over into the domestic services sector to some extent, but productivity gains there have been much lower. Strong wage growth is fuelling consumption, inflation and house prices. Household indebtedness has been rising rapidly. The authorities will have to continue to use fiscal and macro-prudential policies to avoid overheating.