Slovakia: property investment snapshot

The latest news from the Slovakian property market…

According to the Slovak Statistical Office, economic growth in Slovakia in 2007 was a record breaking 10.4%. The average monthly wage in 2007 came to SKK 20,146 (622.08 EUR), a 7.2% y/y increase. Real wages (inflation adjusted) increased by 4.3%.

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The ratings agency Standard & Poor has changed its outlook on Slovakia from stable to positive amidst expectations of euro adoption in 2009. S&P's affirmed Slovakia's "A" sovereign credit rating and raised to "AA+" (from "AA") the transfer and convertibility assessment of the country.

S&P stated: "In conjunction with the strong currency and moderate inflation rate, Slovakia is expected to satisfy the Maastricht criteria for EMU (European Monetary Union) membership"

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Slovakia's central bank (National Bank of Slovakia) predicts economic growth in 2009 to exceed 7% - a slowdown from the last couple years but still an extraordinary figure given the situation in the EU and US.

The Bank also believes that the Slovak economy is optimally positioned to ride out the global economic slowdown. Accordingly Slovak GDP growth is expected to be over 8% and 7% in 2008 and 2009 respectively, compared to the EU and US which may barely register more than 1-1.5% growth.

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According to data from the Department for Tourism at the Ministry of Economy, income from inbound tourism was SKK 3.99 billion (121.7 million euro) in January, a y/y increase of 18.8%.

News compiled in conjunction with Slovakian Investment Property