The analysis will cover the economic performance of Slovakia in the last three years, the years 2000, 2001 and 2002. By the comparison of the economic performance in the last three years we are able to see how is the economy developing or declining as the entrance in the European Union is approaching. It was expected and known that Slovakia will enter the European Union some time soon, but this year in April the agreement was singed and

The Budget Balance for Slovakia in the past years has been negative (budget deficit). In 2000 the deficit was around negative 3.9% form the GDP. In 2001 the deficit was somewhat around the negative 4.8% of the GDP. In 2002 the percent difference from the GDP was negative 7%

One of the reasons for the low inflation in 2002 has to do with the lowering of credit interest rates. According to the Fisher effect as inflation drops, so does the interest rate, and the other way around. Currently the interest rates in the countries members of the EU, are around 2.5%. Even though Slovakia is not a member of the EU yet, still the interest rates are around the ones in the EU. Very important note to make is the fact that most of the banking sector is already in foreign hands. Under the private foreign competition the interest rates will decline and the borrowing of money will become cheaper.

Expenditure Sk milion 14,955 36,103 55,625 82,087 99,451 117,308 141,824 157,877 174,630 197,190 215,012 249,723

Some topics in this essay:
REAL ECONOMY, Balance Sk, IDA IMF, TRADE BALANCE, Slovakia EU, EU Increased, American Dollars, European Union, Direct Investment, Union Slovak, sk milion, unemployment rate, european union, current account, fob sk milion, balance sk, 1 2, balance sk milion, fob sk, inflation rates, 5 6, czech republic, gross domestic product, ** export fob, 2 ** export,