Slovakia's economy slips, warning of job cuts and stagnant wages

Slovakia is experiencing the slowest economic growth in the EU region. The National Bank projects only 0.5% GDP growth by 2026, with the first quarter of that year delivering just 0.9% real growth, hampered by weak industrial output and declining investment activity. Public finances remain strained, with a deficit around 4.5% of GDP and debt projected to exceed the 60% threshold.

Employers warn that delayed policy measures could lead to layoffs and wage freezes. The employers' union RÚZ cites a drop in foreign investor confidence: the share of firms intending to invest in Slovakia fell from about 82% in 2021 to roughly 59% now, while the proportion planning to pull out rose from 18% to over 40%. Higher taxes and rising public spending further erode competitiveness.

Economists note that Slovakia slipped in the latest prosperity index to 23rd place, with growth expected at only around 1% this year, far below faster‑growing neighbours such as Poland and the Czech Republic. They point to high tax burdens, insufficient R&D and innovation spending, and an ageing population that will increase health‑ and pension‑related costs. Calls are being made for tax cuts, greater investment in AI‑related skills and measures to retain and attract Slovak workers abroad.