Following major economic reforms, the Slovak economy has grown strongly in recent years, but still has some way to go to catch up with the advanced European countries. This survey of the Slovak economy examines economic challenges faced by Slovakia including sustaining macroeconomic stability in a currency union, increasing employment rates, removing barriers to product market competition, and improving education outcomes.
Executive Summary
Assessment and Recommendations
Chapter 1. Catching Up with Advanced European Countries and Entering the Euro Area
-Progress in Convergence
-Entry to the Euro Area and Maintenance of Macroeconomic Stability Thereafter
-Policies to Sustain High Economic Growth and Social Cohesion
-Annex 1.A1. Shift-Share Analysis of Labour Productivity Growth
-Annex 1.A2. Implemention of Previous OECD Recommendations
Chapter 2. Improving Employment Prospects: Building on Past Reforms
-Employment Barriers for Low-Skill Workers are Still Significant
-Further Measures Can Be Taken to Reduce Long-Term Unemployment
-Large Regional Differences in Employment Rates Require Regional Wage Differentiation and Policies to Encourage Employee Mobility
-Caution is Required in Reforming Employment Protection Legislation
-Disincentives to Supply Labour among Older Workers Need to be Lowered
-Policies Need to Become More Supportive of Female Labour Supply
Chapter 3. Improving Education Outcomes
-Education Outcomes are Below the OECD Average
-Reforms to Enhance Outcomes
Chapter 4. Renewing Policy Initiatives to Strengthen Product Market Competition
-Privatisation of Government Stakes in the Business Sector Should Resume
-Compeition in Energy Markets is Still Weak
-Auctioning Carbon Dioxide Permits would Lower the Csot of Achieving Pollution Abatement
-Regulation Could Be More Competition-Friendly in theTelecommunications Sector
-The Preconditions for Competition in the Railway Industry Need to Be Put in Place
-Professional Services Need to be Deregulated Further
-Public Sector Reform Can Increase the Benefits Reaped from Competitive Product Markets