BMI's Executive Summary

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The Slovak Republic is one of Europe's most attractive economies, characterised by a relatively favourable business environment and political stability. During the period 2001-06, the economy exceeded expectations of growth even against the backdrop of the general European slowdown. The country's GDP reached a value of US$35.57bn in H107, a growth of 9.2% year-on-year (y-o-y). The Slovak construction sector, on the other hand, logged a growth of 9.6% y-o-y during Q207. BMI's newly released Slovakia Infrastructure Report 2008 forecasts that the construction industry will grow at an average rate of 6.4% during 2008-12.

Slovakia's investment climate and high levels of trade have made major contributions to the country's robust growth. Low tariff rates and active promotion of foreign investment, along with investments from the Slovak government, are the other catalysts of the growth of the economy. The infrastructure sector in the country is also strong and recorded a healthy y-o-y growth rate in Q207. Major infrastructural projects in Slovakia include the construction of sections of the D1 motorway and the R1 high speed road at a cost of US$4.98bn, construction of a nuclear plant in Kecerovce valued at US$4.9bn and an investment of US$244mn in the modernisation of facilities at Bratislava international airport. Further, a number of industrial parks and manufacturing plants are being set up all over the country.

However, there is scope for improvement in certain areas. Inflation rates, though not very high, need to be lowered in order to enable the country to adopt the euro in 2009. Apart from this, high levels of unemployment continue to impede the economy. Although employment has increased in recent times, leading to a fall in unemployment rates, skill shortages have now begun to worsen the situation. Corruption in the judiciary is also an area of concern. Although the country is generally perceived to be politically stable and the present coalition government is expected to last its term in office, the presence of strong leaders among the junior members of the coalition may lead to clashes within the government, which does not auger well for the country and its economy.

This notwithstanding, the Slovakian economy is forecast to grow at a rate of 5.62% on average over the period 2008-12. Further, BMI forecasts that the construction sector in the country will grow at a rate of 6.4% during the same period and reach a value of US$6.06bn, contributing 6% to the country's GDP.

Contents

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Chapter 1 – Industry Trends And Developments

Market Overview

Slovakia's Economy In 2006

Slovakia's Construction Industry In 2006

Major Companies

Some Recent Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Slovakia––Major Infrastructure Projects

Chapter 3 – Business Environment

Table: Emerging Europe Business Rankings

Business Attractiveness Rankings — Methodology

Regional Overview

Slovakia: Business Environment Ranking

Economics — Long–term Risk

Politics — Long–term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 – SWOT Analysis

Slovakia Infrastructure Industry SWOT

Slovakia Political SWOT

Slovakia Economic SWOT

Slovakia Business Environment SWOT

Chapter 5 – Industry Forecast Scenario

Table: Slovakia Infrastructure

Risks

Chapter 6 – Macroeconomic Outlook

Table: Growth & Output

Chapter 7 – Country Snapshot: Slovakia Demographic Data

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare — Vital Statistics

Table: Healthcare — Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages Per Annum

Chapter 8 – Competitive Landscape

Table: Key Players

Chapter 9 – Company Monitor

Doprastav (Bratislava)

ZIPP Bratislava

Skanska (Czech Republic)

Cesty Nitra

Chapter 10 – BMI Forecast Modelling

How we generate our Industry Forecasts

Construction Industry

Sources

Chapter 11 – Appendix: Regional Demographic Data

Wages (ave labour force per annum), US$ PPP

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, US$bn

Competitive Landscape for Europe Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of European Infrastructure Sources

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BMI's European Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, infrastructure industry associations, chambers of commerce and company reports. Information sources include: