Part 751

Political pressure groups and leaders: Party of Entrepreneurs and Businessmen of Slovakia; Christian Social Union; Confederation of Trade Unions or KOZ; Metal Workers Unions or KOVO and METALURG; Association of Employers of Slovakia; Association of Towns and Villages or ZMOS

International organization participation: Australia Group, BIS, BSEC (observer), CCC, CE (guest), CEI, CERN, EBRD, ECE, EU (applicant), FAO, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Intelsat, Intelsat (nonsignatory user), IOC, IOM, ISO, ITU, NACC, NSG, OSCE, PCA, PFP, UN, UNAVEM III, UNCTAD, UNESCO, UNIDO, UNTAES, UPU, WEU (associate partner), WFTU, WHO, WIPO, WMO, WToO, WTrO, ZC

Diplomatic representation in the US: chief of mission: Ambassador Branislav LICHARDUS chancery: (temporary) Suite 250, 2201 Wisconsin Avenue NW, Washington, DC 20007 telephone : (202) 965-5160 FAX: (202) 965-5166

Diplomatic representation from the US: chief of mission: Ambassador Ralph R. JOHNSON embassy: Hviezdoslavovo Namestie 4, 81102 Bratislava mailing address : use embassy street address telephone: (7) 533-0861, 533-3338 FAX: (7) 533-5439

Flag description: three equal horizontal bands of white (top), blue, and red superimposed with the Slovak cross in a shield centered on the hoist side; the cross is white centered on a background of red and blue

Economy

Economy - overview: Since the establishment of the Slovak Republic on 1 January 1993, Slovakia has continued the difficult transformation from a centrally controlled economy to a modern market-oriented economy. Macroeconomic performance improved steadily in 1994-96, but privatization progressed only in fits and starts. Strong export performance boosted GDP growth to 4.8% in 1994 after a four-year decline. GDP surged to 7.4% growth in 1995 and should be only slightly less in 1996, the fastest growth in Central and Eastern Europe. Unemployment fell to about 12% in 1996 and inflation dropped from 26% in 1993 to 5.5% in 1996, the lowest in the region. Foreign debt of $4.6 billion also is the lowest in the region and the second lowest per capita. Private activity now makes up roughly two-thirds of GDP. Positive international financial performance has led Standard & Poor's to raise its rating of the National Bank of Slovakia's foreign currency debt to just one step below investment grade. Although Slovak economic performance continues to be impressive, many warning signs of possible danger ahead have been raised. Aggregate demand has surged in the form of increased personal and government consumption. At the same time that the budget deficit is growing, the money supply has been rapidly increasing, which could apply upward pressure on inflation. The trade and current account deficits both are mounting as imports soar and exports sag. Perhaps most troubling, Slovakia continues to have difficulty attracting foreign investment because of perceived political problems and halting progress on restructuring and privatization. The government projects 6.4% growth in 1997 and 5% in 1998. Continuing economic recovery in western Europe should boost exports and production, but Slovakia's image with foreign creditors and investors could suffer setbacks in 1997 if progress on privatization and restructuring stalls.

GDP: purchasing power parity - $42.8 billion (1996 est.)

GDP - real growth rate: 7% (1996 est.)

GDP - per capita: purchasing power parity - $8,000 (1996 est.)

GDP - composition by sector: agriculture: 5.4% industry: 39.9% services: 54.7% (1995 est.)

Inflation rate - consumer price index: 5.5% (1996 est.)

Labor force: total: 2.538 million by occupation : industry 29.3%, agriculture 8.9%, construction 8.0%, transport and communication 8.2%, services 45.6% (1994)

Unemployment rate: 12% (1996 est.)

Budget: revenues: $5.3 billion expenditures : $5.6 billion, including capital expenditures of $NA (1995)

Industries: metal and metal products; food and beverages; electricity, gas, coke, oil, and nuclear fuel; chemicals and manmade fibers; machinery; paper and printing; earthenware and ceramics; transport vehicles; textiles; electrical and optical apparatus; rubber products

Industrial production growth rate: 2.8% (1996 est.)

Electricity - capacity: 7.12 million kW (1994)

Electricity - production: 23.6 billion kWh (1994)

Electricity - consumption per capita: 4,400 kWh (1995 est.)

Agriculture - products: grains, potatoes, sugar beets, hops, fruit; hogs, cattle, poultry; forest products

Exports: total value: $8.1 billion (January-November 1996) commodities : machinery and transport equipment 18.7%; chemicals 13.4%; miscellaneous manufactured goods 13.1%; raw materials 5.0% (1995) partners: EU 37.4%, Central Europe Free Trade Agreement 44.3% (Czech Republic 35.2%), FSU 7.1% (1995)

Imports: total value : $9.6 billion (f.o.b., January-November 1996) commodities: machinery and transport equipment 29.0%; fuels 18.0%; intermediate manufactured goods 17.6%; miscellaneous manufactured goods 8.0% (1995) partners: EU 34.7%, Central Europe Free Trade Agreement 32.9% (Czech Republic 27.5%), FSU 19.5% (1995)

Debt - external: $4.6 billion hard currency indebtedness (1995 est.)

Economic aid: NA

Currency: 1 koruna (Sk) = 100 halierov

Exchange rates: koruny (Sk) per US$1 - 31.50 (January 1997), 30.654 (1996), 29.713 (1995), 32.045 (1994), 30.770 (1993), 28.26 (1992), 29.53 (1991); note - values before 1993 reflect Czechoslovak exchange rate

Fiscal year: calendar year