Slovakia has lost its lead over Hungary, or maybe not
Since 2010, Slovakia has lost its lead over Hungary (and Poland) when it comes to GDP per capita, adjusted for purchasing power. In 2010, Slovakia was 16% above the Hungarian level, while last year Hungary’s GDP was slightly higher. This is either due to the absence of any positive changes during the Robert Fico governments, or inaccurate calculations of purchasing power in Slovakia. In terms of nominal GDP per capita, Slovakia’s lead has shrunk just slightly, from 21% to 17% during the same period. The average after-tax wage in both countries is very similar (€915 in Slovakia and €928 in Hungary last year). The current government believes that its reforms and the money from the EU Recovery and Resilience Facility will provide a much-needed growth stimulus.
