Slovak Republic: 2019 Article IV Consultation-Press Release; Staff Report
IMF Staff Country Reports, July 12, 2019
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- Slovak Republic: 2019 Article IV Consultation-Press Release; Staff Report
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Bibliographic details
- Published: July 12, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498325127.002
Executive summary and macro context
- Leveraging its location and low-cost skilled labor, Slovakia has attained a very high level of integration with the global value chains, which has proved pivotal to exports growth and income convergence with the European Union.
- After half a decade of robust growth, the Slovak economy is decelerating.
- With rising trade tensions and a turning economic cycle, several vulnerabilities are coming to the fore.
External sector vulnerabilities
- High dependence on exports combined with a concentrated export structure makes Slovakia particularly vulnerable to external developments.
- Exports growth has been a central driver of income convergence with the European Union.
Domestic financial and household vulnerabilities
- A prolonged period of double-digit mortgage credit growth has increased household vulnerability to adverse shocks.
- Declining bank profit margins have made the financial sector susceptible to labor and property market downturns.
- Households and the financial sector are susceptible to labor and property market downturns.
Subjects and keywords (as provided)
- Subjects: Banking, Expenditure, Exports, Financial institutions, Housing prices, International trade, Labor markets, Mortgages, Prices, Public debt
- Keywords: core inflation, CR, credit growth, Europe, executive board assessment, Exports, Global, growth, Housing prices, IMF staff calculation, interest rate, ISCR, labor market, liability positions vis-à-vis nonresident, Mortgages, Slovakia
Content in this bundle
- 1svkea2019001