The Slovak Republic’s export-led manufacturing-based economy is being challenged by global trade tensions and fiscal pressures. The country should strengthen public finances and implement reforms to boost productivity and employment, according to the OECD Economic Survey of the Slovak Republic.
GDP growth is expected to remain modest in 2026, at 0.7%, following growth of 0.8% in 2025, but to recover to 1.6% in 2027. Inflation will remain at 4.2% in 2026, the same rate as in 2025, and then decline to 2.6% in 2027.
“Improving the business environment through pro-competitive reforms, as well as fostering learning, reskilling and upskilling, will help strengthen the Slovak economy’s long-term growth prospects,” OECD Chief Economist Stefano Scarpetta said, presenting the Survey in Bratislava alongside the Slovak Republic’s Minister of Finance Ladislav Kamenický. “Structural reforms to raise employment will also be key to stabilise public debt.”
Efforts to encourage longer working lives should be intensified, including by curtailing early retirement pathways and revising pension rules to make early retirement during years of high inflation less attractive. The duration of parental leave should be reduced and childcare expanded to encourage greater female employment.
Strengthening public integrity and governance would support economic dynamism and help attract foreign investment. Abolishing the 2025 financial transactions tax, lowering the labour tax wedge and harmonising corporate tax rates across small and larger enterprises would encourage firm growth and stimulate innovation.
Improving public support to start-ups and successful small firms would foster research and development, which remains below the OECD average. Scaling up effective grant programmes, while relying more on foreign evaluators and established independent agencies, would improve transparency, reduce uncertainty and help direct funds to the best projects.
Implementing planned education and training reforms is essential to raise skills and reduce shortages. Introducing individual learning accounts would also strengthen adult skills.
Artificial intelligence has the potential to boost productivity growth, depending on the speed and depth of AI adoption by businesses, which is rising but still lags the EU average and remains uneven across company sizes. Reducing regulatory barriers and supporting widespread diffusion are key to scale up AI adoption, especially for small and medium-sized enterprises. Digital Innovation Hubs providing tailored legal guidance alongside technical support and roll-outs of controlled testing environments would lower barriers and accelerate adoption. Strengthening higher education in AI-relevant fields would also support faster productivity growth.
See the Overview of the Economic Survey of the Slovak Republic with key findings and charts (this link can be used in media articles).
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