SHORT OVERVIEW ON SLOVAKIA Fabio Bini,   Vice President Camera di Commercio Italo-Slovacca Bratislava,  27th   October  20...
WHERE ARE WE  ?
Slovakia a top growth performer of the past decade Source: UniCredit Bank, EUROSTAT <ul><li>Due to structural reforms and ...
Macroeconomic outlook is positive Source: UniCredit Bank, EUROSTAT, NBS, SO SR <ul><li>Implemented structural reforms shou...
Credible fiscal consolidation program   Source: UniCredit Bank, MF SR <ul><li>After two years of overspending (2009-10), t...
Favorable relationship between labor cost and productivity Note: Labour costs – compensations per employee, Labour product...
Slovakia has a strong record in attracting FDI FDI (% GDP) Source: UniCredit Bank, EUROSTAT, NBS <ul><li>Due to a favorabl...
All-in labor costs still relatively competitive Note: Labour costs – compensations per employee  Source: UniCredit Bank, E...
Structure of foreign trade by countries (1H 2011) EU countries dominate covering 85% of exports and 65% of imports UniCr C...
Structure of foreign trade by sectors (1H 2011) Cars and Consumer electronics cover more than 40% of exports Exports by se...
Slovakia committed to structural reforms <ul><li>Fiscal consolidation  –  necessary to bring the public finance on a susta...
Insight into Investment Incentives
<ul><ul><li>ELIGIBLE ARE COSTS OF: </li></ul></ul><ul><ul><li>LAND   </li></ul></ul><ul><ul><li>BUILDINGS   </li></ul></ul...
Investment Incentives:  F orms &  I ntensity <ul><ul><li>INCOME TAX RELIEF   up to  10   tax periods </li></ul></ul><ul><u...
Investment   Incentives:  INDUSTRY Min. Investment & Share of New Machinery  TV VT KS RA RS PT LC VK SO KK SB PO GL LE BJ ...
State Aid Effectivity <ul><li>In the period 2002 – 201 1 : </li></ul><ul><li>109   approved investment project </li></ul><...
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Tsok promos automotive oct 2011

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  • A ktualizované 10/2010
  • Tsok promos automotive oct 2011

    1. 1. SHORT OVERVIEW ON SLOVAKIA Fabio Bini, Vice President Camera di Commercio Italo-Slovacca Bratislava, 27th October 2011 Camera di Commercio Italo-Slovacca Taliansko-Slovenská Obchodná Komora
    2. 2. WHERE ARE WE ?
    3. 3. Slovakia a top growth performer of the past decade Source: UniCredit Bank, EUROSTAT <ul><li>Due to structural reforms and forces of convergence, Slovak economy was the fastest growing one in the EU(27) in the past decade with the average annual growth rate of 4.8% </li></ul>
    4. 4. Macroeconomic outlook is positive Source: UniCredit Bank, EUROSTAT, NBS, SO SR <ul><li>Implemented structural reforms should give a boost to the growth potential in the medium term </li></ul><ul><li>After a slowdown in 2H11 and 2012, the economy should accelerate to above 4% annual growth </li></ul><ul><li>The public sector will gradually deleverage </li></ul>
    5. 5. Credible fiscal consolidation program Source: UniCredit Bank, MF SR <ul><li>After two years of overspending (2009-10), the government committed to fiscal consolidation in 2011-2014 </li></ul><ul><li>The main objective is to bring public finance deficit below 3% GDP in 2014 </li></ul><ul><li>A new constitutional law should introduce a debt ceiling of 60/50% GDP and an independent fiscal council </li></ul><ul><li>The new law should reduce a room for future fiscal excesses </li></ul>
    6. 6. Favorable relationship between labor cost and productivity Note: Labour costs – compensations per employee, Labour productivity – GDP per employment Source: UniCredit Bank, EUROSTAT <ul><li>Slovakia is a fundamentally attractive place to invest – Slovak workers are relatively productive (50% GER) but cost little (36% of GER) </li></ul>
    7. 7. Slovakia has a strong record in attracting FDI FDI (% GDP) Source: UniCredit Bank, EUROSTAT, NBS <ul><li>Due to a favorable relationship between labor cost and productivity, Slovakia has a strong record of attracting FDI </li></ul><ul><li>Recent slow-down in FDI inflow to be addressed via reform efforts </li></ul>???
    8. 8. All-in labor costs still relatively competitive Note: Labour costs – compensations per employee Source: UniCredit Bank, Eurostat <ul><li>In the run-up to the euro, labor costs increased in Slovakia but still largely competitive with Hungary and the Czech Republic, much less than in Germany </li></ul>
    9. 9. Structure of foreign trade by countries (1H 2011) EU countries dominate covering 85% of exports and 65% of imports UniCr Chapter Title – Chapter Section Title UniCredit Bank ako člen skupiny UniCredit Source: UniCredit Bank based on data of SO SR Exports Imports Exports - cars Exports - TVs EU27 85,2% EU27 66,3% EU27 91,7% EU27 65,1%
    10. 10. Structure of foreign trade by sectors (1H 2011) Cars and Consumer electronics cover more than 40% of exports Exports by sectors Imports by sectors Exports by Broad economic categories Imports by Broad economic categories
    11. 11. Slovakia committed to structural reforms <ul><li>Fiscal consolidation – necessary to bring the public finance on a sustainable footing </li></ul><ul><li>Labor code – to increase labor market flexibility </li></ul><ul><li>Payroll reform – to simplify the current system and gradually reduce payroll tax burden </li></ul><ul><li>Pension reform – parametric changes to make it automatically immune to worsening demographic outlook </li></ul><ul><li>Project Singapore – complex program to improve the business environment </li></ul>
    12. 12. Insight into Investment Incentives
    13. 13. <ul><ul><li>ELIGIBLE ARE COSTS OF: </li></ul></ul><ul><ul><li>LAND </li></ul></ul><ul><ul><li>BUILDINGS </li></ul></ul><ul><ul><li>N EW MACHINERY & TECHNOLOGY EQUIPMENT </li></ul></ul><ul><ul><li>L ICENSES & P ATENT RIGHTS </li></ul></ul><ul><ul><li>OR </li></ul></ul><ul><ul><li>WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS </li></ul></ul>Investment Incentives: A id is calculated from ...
    14. 14. Investment Incentives: F orms & I ntensity <ul><ul><li>INCOME TAX RELIEF up to 10 tax periods </li></ul></ul><ul><ul><li>- IN ALL DISTRICTS </li></ul></ul><ul><ul><li>CASH GRANT (paid ex post , based on annual costs report) </li></ul></ul><ul><ul><li>CONTRIBUTIONS ON NEW JOBS (paid ex post , based on annual costs report) </li></ul></ul><ul><ul><li>IN THE CASE OF INDUSTRY APPLICABLE ONLY IN DISTRICTS WITH HIGHER UNEMPLOYMENT </li></ul></ul><ul><ul><li>THE TOTAL AMOUNT IN ALL REQUESTED FORMS CANNOT EXCEED THE MAX . INTENSITY IN DISTRICT 2 0% - 50% OF THE ELIGIBLE COSTS. </li></ul></ul>
    15. 15. Investment Incentives: INDUSTRY Min. Investment & Share of New Machinery TV VT KS RA RS PT LC VK SO KK SB PO GL LE BJ SK SP ML HE SV PP SN BR LM TS NO CA DK RK MT ZA KM BY PB PU IL TN TR BB ZV DT ZC BS KA LV NR ZM TO PE BN NM PN TT GA DS MA SE SA PK SC BA HC SL KE SA MY KN NZ PD ZH RV MI 14 mil EUR & 60% 7 mil EUR & 50% 3.5 mil EUR & 40%
    16. 16. State Aid Effectivity <ul><li>In the period 2002 – 201 1 : </li></ul><ul><li>109 approved investment project </li></ul><ul><li>41,057 number of newly created jobs </li></ul><ul><li>25% - average intensity of state aid </li></ul><ul><li>29,000 E UR – average intensity of state aid per 1 newly created job </li></ul><ul><li>Examples of successful investment projects: </li></ul><ul><li>1 , 125 newly created jobs </li></ul><ul><li>1 , 412 newly created jobs </li></ul>

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