Slovakia no longer catching up with Western European living standards

While the Slovak economy grew at twice the EU average between 2000 and 2008, after 2015 the catching up with Western European living standards almost stopped, and Slovakia now ranks at the bottom of the V4 countries, according to an analysis by the central bank NBS. Instead of GDP growth, price growth accelerated; the price level here is 81% of the EU average, but household incomes are only 73%. The economy is unable to transition to higher value-added production, as the government focuses on increasing social benefits and invests little in research, education, and infrastructure. Stagnant labor productivity is responsible for the country being stuck in the middle-income trap.

(teraz.sk, dennikN.sk)