Slovakia reports reduced deficit but rising public debt

According to Eurostat data, Slovakia's public deficit improved to 4.4 percent of GDP last year, down from 5.4 percent in the previous year. Despite this reduction, the country's public debt continues to rise, reaching approximately 83.96 billion euros, which represents 60.5 percent of GDP.

In the second quarter of 2026, the growth rate of the debt slowed slightly. By the end of June, debt reached 86.42 billion euros, causing the debt-to-GDP ratio to decrease by one percentage point to 60.6 percent. Slovakia was noted as being among the six EU member states with the most significant quarterly decrease in debt relative to economic performance.

Separately, the National Bank of Slovakia noted that while corporate profits in Slovakia declined for the second consecutive year in 2025, state tax revenue from corporate income increased. This was driven by changes in tax rates: the rate for small businesses decreased from 15 percent to 10 percent, while the rate for the largest companies with profits exceeding 5 million euros rose from 21 percent to 24 percent. Consequently, approximately 0.15 percent of companies now generate nearly half of the total corporate tax revenue.