slovakia, even though highly industrialized by East European
standards, suffered from an aging capital plant, lagging technology,
and a deficiency in energy and many raw materials. In January 1991,
approximately one year after the end of communist control of Eastern
Europe, the Czech and Slovak Federal Republic launched a sweeping
program to convert its almost entirely state-owned and controlled
economy to a market system. In 1991-92 these measures resulted in
privatization of some medium- and small-scale economic activity and
the setting of more than 90% of prices by the market - but at a cost
in inflation, unemployment, and lower output. For Czechoslovakia as a
whole inflation in 1991 was roughly 50% and output fell 15%. In 1992
in Slovakia, inflation slowed to an estimated 8.7% and the estimated
fall in GDP was a more moderate 7%. In 1993 GDP fell roughly 5%, with
the disruptions from the separation from the Czech lands probably
accounting for half the decline; exports to the Czech Republic fell
about 35%. Bratislava adopted an austerity program in June and
devalued its currency 10% in July. In 1993, inflation rose an
estimated 23%, unemployment topped 14%, and the budget deficit
exceeded the IMF target of $485 million by over $200 million. By
yearend 1993 Bratislava estimated that 29% of GDP was being produced
in the private sector. The forecast for 1994 is gloomy; Bratislava
optimistically projects no growth in GDP, 17% unemployment, a $425
million budget deficit, and 12% inflation. At best, if Slovakia stays
on track with the IMF, GDP could fall by only 2-3% in 1994 and
unemployment could be held under 18%, but a currency devaluation will
likely drive inflation above 15%.
National product:
GDP - purchasing power equivalent - $31 billion (1993 est.)
National product real growth rate:
-5% (1993 est.)
National product per capita:
$5,800 (1993 est.)
Inflation rate (consumer prices):
23% (1993 est.)
Unemployment rate:
14.4% (1993 est.)
Budget:
revenues:
$4.5 billion
expenditures:
$5.2 billion, including capital expenditures of $NA (1993 est.)
Exports:
$5.13 billion (f.o.b., 1993 est.)
commodities:
machinery and transport equipment; chemicals; fuels, minerals, and
metals; agricultural products
partners:
Czech Republic, CIS republics, Germany, Poland, Austria, Hungary,
Italy, France, US, UK
Imports:
$5.95 billion (f.o.b., 1993 est.)