Foundations for Growth and Competitiveness 2026

Slovak Republic

Economic convergence has lost momentum. Productivity growth has weakened, with the slowdown reflecting declining foreign direct investment, waning benefits from integration into global value chains, and persistently low innovation. Fixed investment remains subdued, limiting capital deepening relative to more advanced economies. Labour utilisation is also lagging. Employment and participation rates remain below those of peer countries, particularly among mothers with young children, contributing to a persistent gap in GDP per capita.

To reinvigorate growth, policy should focus on enhancing the innovation ecosystem, fostering a business environment more conducive to investment in new technologies and knowledge-based capital, and improving health outcomes. Improving the quality and relevance of education and training systems, bringing young mothers into the workforce alongside better activation policies targeted at re-skilling low-skilled individuals and people at risk of displacement, will also be key to alleviating skills shortages and increasing labour participation.

Economic performance

Gaps to the average of the upper half of the OECD countries

Source: Panel A: OECD, Economic Outlook database; Panel B: OECD, Labour Force Statistics database; Panel C: OECD, Economic Outlook and Productivity databases; Panel D: OECD, Economic Outlook and Annual National accounts, GFCF by assets databases.

Selected policy gaps

Note: Other Eastern European countries refers to the unweighted average of Czechia, Hungary and Poland.

Source: OECD calculations based on the Foundations for Growth and Competitiveness database.

Public governance: Strengthen anti-corruption and lobbying regulations

High levels of perceived corruption and low trust in the independence of the judiciary remain key barriers to growth. In 2022, 84% of businesses in Slovakia considered corruption widespread, well above the EU average of 63%. Although progress has been made towards a strategic approach to public integrity, important gaps persist, most notably the absence of a dedicated lobbying framework. There are no legal definitions of lobbying or lobbyists, and no enforceable sanctions for undue lobbying practices. Legislation is often changed, undermining stability and raising uncertainty.

Recommendations

✓ Implement the Anti-Corruption Strategy for the years 2024-2028.

✓ Introduce a legal framework to regulate lobbying activities and strengthen legislation on conflicts of interest and asset declarations.

✓ Promote alternative dispute resolution mechanisms to enhance judicial efficiency.

Skills: Improve the adaptability of education and talent provision

Slovakia faces persistent skill mismatches that weigh on productivity and employment outcomes. Higher education institutions rank poorly internationally, with low research performance and limited labour market relevance. A significant share of secondary graduates studies abroad, pointing to low confidence in domestic tertiary institutions. Adult participation in formal and informal learning is low, while work-based vocational training could be improved.

Recommendations

✓ Expand performance-based funding in higher education to reward excellence in teaching and research.

✓ Establish a one-stop-shop portal providing information access on labour market and skill needs as well as study opportunities and systematically provide VET-students with information on graduate’s wages.

✓ Scale up active labour market policies, with a focus on re-skilling low-skilled individuals and those at risk of displacement with the green and digital transitions.

Health: Strengthen the health system and promote preventive care

Health outcomes in the Slovak Republic remain poorer than on average in OECD countries, with life expectancy among the lowest across the OECD. Deep disparities persist across socio-economic groups, and Slovakia records one of the widest gaps in life expectancy by education level in the European Union. Chronic shortages of health professionals continue to limit access to quality care. Strengthening the healthcare system and investing in prevention would improve population health, reduce demand for curative and long-term care services, and support longer and healthier working lives.

Recommendations

✓ Ensure full implementation of the 2024 hospital network reform, establishing well-defined areas of hospital expertise and specialisation.

✓ Introduce more targeted health promotion programmes and consider allocating a larger share of health spending to preventive care.

✓ Implement pay-for-performance schemes for general practitioners to improve the quality and efficiency of care.

Labour market: Raise employment of mothers with young children

Employment rates among mothers with young children are low, and the gender wage gap remains substantial. Limited access to childcare, particularly for children under age three, and particularly long parental leave, four times the OECD average, constrains female labour force participation and discourages earlier returns to work.

Recommendations

✓ Expand the availability of affordable, high-quality childcare, particularly in underserved regions.

✓ Shorten the duration of parental leave and make a portion conditional on the second parent’s use.

✓ Promote flexible working arrangements for parents.

Innovation: Boost R&D spending and digital adoption

Slovakia lags in innovation performance, with low patenting activity and R&D expenditure. Investment in ICT and the adoption of advanced digital technologies such as cloud computing, artificial intelligence or big data, especially by SMEs, remains limited. While digital infrastructure has improved, further efforts are needed to meet national coverage goals. Marginal tax subsidies for R&D are quite generous, yet take-up by businesses is low by international comparison and skewed towards large multinational companies.

Recommendations

✓ Make the R&D tax allowance refundable for small and young companies to improve accessibility.

✓ Expand direct public support for innovation, including competitive R&D grants.

✓ Fully implement the National Broadband Plan to ensure ultra-fast internet access for all households by 2030.

Recent progress on structural reforms

Progress in strengthening the anti-corruption framework has continued, with the Whistleblower Protection Office becoming operational in 2021. The update of the 2019 National Anti-Corruption Programme remains pending, although a draft includes provisions aimed at enhancing integrity and managing conflicts of interest among senior executives in central government. The new National Strategy for Research, Development and Innovation sets a target to increase public and private R&D spending from the national budget by 2030. In parallel, Slovakia’s Recovery and Resilience Plan allocates approximately 20% of total grants to digital transformation. A new support scheme has been launched to foster the development and application of advanced digital technologies by businesses, including SMEs, as well as research institutions and other stakeholders.