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The economy of Slovakia is based upon Slovakia becoming an EU member state in , and adopting the euro at the beginning of Its capital, Bratislava , is the largest financial centre in Slovakia. As of 1. Due to the Slovak GDP growing very strongly from until — e.
Real annual GDP growth peaked at 6. Nearly the entire economy has now been privatized, and foreign investment has picked up. Economic growth exceeded expectations in the early s, despite recession in key export markets. In policies of macroeconomic stabilization and structural reform led to spiraling unemployment.
Unemployment peaked at Solid domestic demand boosted economic growth to 4. Strong export growth, in turn, pushed economic growth to a still-strong 4. In July , the inflation rate dropped to 2. In , Slovakia reached the highest economic growth 8. The country has had difficulties addressing regional imbalances in wealth and employment. Foreign direct investment FDI in Slovakia has increased dramatically. In October new investment stimuli introduced — more favorable conditions to IT and research centers, especially to be located in the east part of the country where there is more unemployment , to bring more added value and not to be logistically demanding.
Origin of foreign investment — — the Netherlands Top investors by companies: Foreign investment sectors — industry Slovakia's tourism has been rising in recent years, income has doubled from million USD in to 1.
However, this sector still remains underdeveloped in comparison with neighbouring countries. Slovakia became industrialized mostly in the second half of the 20th century. Heavy industry including coal mining and the production of machinery and steel was built for strategic reasons because Slovakia was less exposed to the military threat than the western parts of Czechoslovakia.