BRATISLAVA, March 26, (WEBNOVINY) — Foreign investors in Slovakia are resistant to the gloomy sentiment driven by the economic depression. Surveys of a number of chambers of commerce and industry formed by Slovak and foreign members involving 212 companies in Europe show that most of investors expect the volume of new deals to equal or even exceed last year’s level. “The survey shows that foreign investors will continue sending out growth impulses this year,” Vladimir Slezak, General Director of Bratislava-based Siemens subsidiary, which is a member of the Slovak-German Chamber of Commerce and Industry, commented on the survey results.
Almost half of the polled investors expect their turnover to grow this year while only less than 20 percent of companies are preparing for declined trades. About one in four companies would like to increase investments and the number of employees. “Optimism is somehow dwindled compared with the previous year but some expressly crisis mood is still out of question because the number of companies that really project unfavorable trade balance for this year are unequivocally in minority,” added Slezak.
Less than 20 percent of the surveyed companies assess the current economic situation in Slovakia as good while even less en entities expect improvement later this year. Characteristic for Slovakia’s location is its EU membership, obliging and productive, relatively low-cost workforce as well as accessibility and quality of local suppliers, according to investors. Foreign companies view the flat tax system as only a slightly positive factor of this location. “This is a clear signal of investors indicating that increasing of taxes is a poison for economic boom. The flat tax had not been as attractive as it used to be already prior to parliamentary election,” stressed Slezak.
Foreign investors call for political stability. They opine that the new government should step up a gear in their fight against corruption, law enforcement and in reforms in the system of education. “Shortage of qualified employees has become a problem again. The economy needs more and especially better qualified graduates from technical schools to halt this development. Provision of practical knowledge is definitely missing in the current education system,” warned Slezak.
The survey also shows that investors assess Slovakia as the most attractive investment location among CEE countries. Majority of foreign investors (88 percent) should invest in Slovakia again.
The survey was carried out by the British Chamber of Commerce, French – Slovak Chamber of Commerce, Dutch Chamber of Commerce in the Slovak Republic, Austrian Embassy – Commercial Attaché, Slovak-German Chamber of Commerce and Industry, Swedish Chamber of Commerce in the Slovak Republic, Slovak – Austrian Chamber of Commerce and Italian – Slovak Chamber of Commerce in February of this year.
SITA
