Economy
GDP (2006): $55.2 billion.
GDP growth rate (2006): 8.3%.
Nominal GDP per capita (2006): $18,200 (CIA World Factbook), $17.600 (International Monetary Fund).
Unemployment (May 2007): 8.3%.
Natural resources: Antimony, mercury, iron, copper, lead, zinc, magnesite, limestone, lignite, uranium (not yet in production).
Agriculture: Products--grains, potatoes, poultry, cattle, hogs, sugar, beets, hops, fruit, forest products.
Industry: Types--iron and steel, chemicals, automobiles, light industry, food processing, back-office support, engineering, building materials.
Trade (2006): Exports--$41.5 billion: vehicles, iron and steel, machinery and energy equipment, plastics, fiber optics. Imports (2006)--$44.6 billion: mineral fuels and oils, machinery, audio/video equipment, vehicles. Partners-- Germany 23.7%, Czech Republic 14.1%, Italy 6.5%, Poland 6.2%, Austria 6%, Hungary 5.8%, France 4.3%, Netherlands 4.2%.
Foreign investment (1989-2006, OECD data): Cumulative-$17.3 billion USD, FDI inflow $4.2 billion USD in 2006 (highest-ever FDI inflows). Sources of direct foreign investment-Netherlands 19.5%, Germany 18.2%, Austria14.8%, Italy 12.4%, Hungary 6.1%, United Kingdom 5.3%, Czech republic 4.1%, Republic of Korea 3.6%, USA 3.3% (9^th largest investor)**, Cyprus 2.7%.. Sectors of direct foreign investment - industrial production, financial services, energy production and distribution, wholesale and retail trade, transportation and telecommunications.

*Figures are based on immediate city's (not region) Permanent Resident Population.
**Government of Slovakia official statistic. A recent U.S. Embassy survey found that, taking into account investments of U.S. subsidiaries in Europe, U.S. investment is more than 15% of the total.

SLOVAKIA ECONOMY
Since the establishment of the Slovak Republic in January 1993, Slovakia has continued the difficult transformation from a centrally-planned to a modern market-oriented economy. This reform slowed in the 1994-98 period due to the crony capitalism and irresponsible fiscal policies of Prime Minister Vladimir Meciar's government. While economic growth and other fundamentals improved steadily during Meciar's term, public and private debt and trade deficits soared, and privatization, often tarnished by corrupt insider deals, progressed only in fits and starts. Real annual GDP growth peaked at 6.5% in 1995 but declined to 1.3% in 1999. Much of the growth in the Meciar era, however, was attributable to high government spending and over-borrowing rather than productive economic activity.

Slovakia entered into the European Exchange Rate Mechanism in November, 2005, and is currently on target to join the Euro Zone on January 1, 2009 by meeting or coming close to meeting the Maastricht Criteria. Headline consumer price inflation dropped from 26% in 1993 to 4.5% in 2006, and fell below 2.4% in the first months of 2007, supported by falling world energy prices and exchange rate appreciation. .The current account deficit, including the cost of the second pension pillar, reached 3.3% in 2006, but the general government deficit for 2007 is forecast at 2.9%.

Government debt was 33% of GDP in 2006.

The exchange rate has remained within the 15% fluctuation bands around the central ERM2 rate, but the central parity rate of the Slovak koruna against the Euro was revalued by 8.5% to SKK 35.4424 in March 2007 in view of significant inflows of foreign direct investment followed by the progressive acceleration of economic growth and substantial appreciation of the estimated equilibrium real exchange rate.

Foreign direct investment (FDI) in Slovakia has increased dramatically. Cheap and skilled labor force, low taxes, a 19% flat tax for corporations and individuals, no dividend taxes, a relatively liberal labor code and a favorable geographical location are Slovakia's main advantages for foreign investors. Major pillars of sound economic reforms remain untouched even after the 2006 elections. FDI inflow grew more than 600% from 2000 and cumulatively reached an all-time high of,$17.3 billion USD in 2006., or around $18,000 per capita by the end of 2006. The total inflow of FDI in 2006 was $1.31 billion.

Germany is Slovakia's largest trading partner, purchasing 23.52% of Slovakia's exports and supplying 20.48% of its imports in 2006. Other major partners include the Czech Republic (13.9% imports and 12.3% exports), Italy (6.48% and 4.52%), Russia (1.64% and 11.24%), and Austria (5.98% and 3.37%). Slovakia imports nearly all of its oil and gas from Russia and its export markets are primarily OECD and EU countries. More than 85.1% of its trade is with EU members and with OECD countries (89.7%). Slovakia's exports to the United States made up 3.16% of its overall exports in 2006 (1 319.2 mil USD), while imports from the U.S. account for 1.25% of its total purchases abroad (559.1 mil USD).

NATIONAL SECURITY
The armed forces of the Slovak Republic number about 18,000 uniformed personnel and are made up of Land Forces, Air Forces (which includes air defense forces) and a Joint Training and Doctrine Command. Land forces consist of two mechanized infantry brigades, one with two mech battalions (BMP-1), a tank battalion (T-72), and a combined artillery battalion. The other brigade has three mech battalions (BMP-2).. Each maneuver brigade is or is planned to be task organized with combat support units, such as an artillery battalion, an engineer battalion, a logistics support battalion, and an air defense battery. Other land forces include a separate NBC battalion, engineer battalion, ISTAR company, signal battalion and command support battalion. Air and Air Defense Forces are comprised of a fighter wing of MiG-29s, a wing of Mi-24 attack and Mi-17 utility helicopters, and a SAM brigade. Military police are under the command of the Ministry of Defense and a special operations regiment falls under the Land Forces Command. The armed forces are among the most respected national institutions according to national opinion polls.

Slovakia's ambitious roadmap for defense reform is the Force 2015 Long-Term Plan, which strikes a well-reasoned balance between requirements and resources and envisions a professionalized, combat-capable force of 18,000 uniformed personnel. Slovakia has about 530 personnel deployed to coalition and NATO-led operations in Afghanistan, Iraq and Kosovo, as well as UN-led peace support operations (PSOs) worldwide. Defense spending was 1.6% of GDP in 2006.