The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:
• Openness to, and Restrictions upon, Foreign Investment,
• Investment and Taxation Treaties,
• Legal Regime,
• Industrial Policies,
• Protection of Property Rights,
• Financial Sector,
• State-owned Enterprises,
• Corruption,
• Labor Policies and Practices,
• Political and Security Environment, and
• U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs
Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.
These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors.
To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.
EXECUTIVE SUMMARY - SLOVAKIA
Slovakia has a small, open, export-oriented economy and a population of 5.42 million people. It joined the OECD in 2000, the EU and NATO in 2004, the Schengen Area in 2007, and the eurozone in 2009. While Slovakia increasingly struggles to compete with regional peers, it remains an attractive destination for foreign direct investment (FDI) due to its integration in global value chains, favorable geographic location, a skilled workforce, and low-carbon electricity mix. Government authorities generally encourage and display a positive attitude toward FDI.
The Slovak economy grew by 2.1 percent in 2024, slowed by cooling foreign demand and lower investment and household spending. While wholesale energy prices decreased from record highs, the Slovak economy continues to feel the effects of the energy crisis, and the government has maintained costly household energy subsidies. Headline inflation decreased from 10.7 percent in 2023 to 2.8 percent in 2024 but is expected to rebound to 3.7 percent in 2025. The Slovak government has prioritized attracting higher value-added investment and investment in less-developed regions but faces challenges in effective policy implementation. Slovakia struggles to effectively draw down EU funds, including the Recovery and Resilience Facility and Structural and Investment Funds. Under these programs, Slovakia has received an allocation of more than €20 billion for structural reforms and investments.
Slovak government progress on anti-corruption initiatives has slowed since 2023, while surveys show increased business community concerns about the impact of corruption. EU and domestic actors have expressed concerns over the government’s legislative and regulatory changes, particularly those reducing penalties and statutes of limitations for corruption and economic crimes. In recent years, Slovakia’s fiscal deficits have ballooned, undermining the long-term sustainability of public finances and pressuring the government to adopt sweeping measures to consolidate debt and increase revenues, often without prior stakeholder consultations.
Slovakia remains the largest per capita car producer in the world, with four established car manufacturers and an additional international automaker preparing to open a plant. The manufacturing sector remains attractive and has the potential for further growth, including in:
- automotive, machinery, and transport equipment;
- metallurgy;
- electronics;
- chemicals; and
- pharmaceuticals.
Efforts to reduce dependence on Russian energy and growing demand from consumers drive potential growth in nuclear energy, renewables, energy efficiency, and diversely sourced fuels.
Positive aspects of Slovakia’s investment climate include:
- Membership in the EU and the eurozone
- An open, export-oriented economy located close to western European markets
- Investment incentives, including for foreign investors
- A low-carbon electricity mix based on nuclear energy
- A sound banking sector deeply integrated with Europe
Challenging aspects of Slovakia’s investment climate include:
- Legacy dependence on Russian primary energy imports
- High sensitivity to regional and global economic developments
- Weak public administration and an inefficient judiciary
- Legal uncertainty and stakeholder concerns about efforts to combat corruption
- Significant regional disparities, suboptimal national transport network
- Limited public and private R&D investment
- Heavy reliance on EU structural funds, chronic deficiencies in allocation of funds
- Tax rates above the regional average
- Fiscal sustainability challenges
- “Brain drain” and shortages of skilled workers
View the Slovakia - Investment Climate Statement.