Slovak Republic: 2025 Article IV Consultation-Press Release; and Staff Report

The 2025 Article IV Consultation with Slovak Republic discusses that economic growth accelerated to 2 percent in 2024 from 1.4 percent in 2023. Private consumption was the main driver fueled by positive real wage growth, the extension of energy support, and more generous pensions. Safeguarding Slovakia’s strong fiscal framework is essential for the credibility of the consolidation effort. The financial sector appears resilient to stress, reflecting a healthy level of buffers and profitability, though some risks remain. Slovakia needs structural reforms to diversify its economy, sustain productivity growth, increase the labor force, and further reduce carbon emissions. Deepening the European single market would allow innovative firms to leverage economies of scale and facilitate cross-border flows of capital including venture capital which are critical for start-ups. Sustained efforts to strengthen governance, reduce vulnerabilities to corruption, and enhance judicial independence would help lift the economy’s resilience and growth potential.