Low investments hinder economic growth

Slovakia stopped catching up with Western European living standards lately, partly due to low investment levels, with governments focusing instead on raising taxes and social benefits. The only source of investment in the public sector is EU funds, which the state is unable to spend effectively. Slovak investment in infrastructure, real estate, R&D, and IT last year reached just 110% of 2011 levels, compared to 135% in Czechia, 136% in Hungary, and 152% in Poland. Slovakia could no longer rely on foreign investors due to high labor costs and low productivity. The volume of foreign direct investment as a share of GDP in Slovakia in 2015-24 was only 1.4%, while in the other V4 countries it was just under 3%.

(nbs.sk, teraz.sk)