Slovak Republic : Staff Report for the 2005 Article IV Consultation

The Slovak Republic's 2005 Article IV Consultation reports that sound macroeconomic management and a wide range of fundamental structural reforms are supporting nominal convergence with European Union norms. Real GDP growth accelerated to 6 percent in 2005, driven by an improvement in the contribution of net foreign demand while domestic demand growth maintained momentum. The external current account deficit doubled to about 7¼ percent of GDP, owing to a deterioration in the terms of trade and higher reinvested earnings on foreign investment.