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SLOVAKIA- A CONSUMER BASE ON THE RISE.
(From Market - Europe)
Domestic demand for Slovakian goods dropped off sharply during the first half of 2003 and that will contribute to healthy year-on-year sales gains by the second quarter of 2004. However, when Slovakia joins the EU in 2004, local companies will have an uphill battle competing with goods and services emanating from Western Europe
Slovakia has made important strides toward becoming a modern market economy. With major privatizations almost complete, the value of foreign direct investment should rise by more than 10 percent year-on-year as 2004 progresses. The government's right-of-center economic policies have boosted confidence among business leaders and that will contribute to growth in capital goods expenditure in excess of 10 percent (year-on-year) by the second half of this year
The Achilles' heel of Slovakian internal consumption is weak consumer confidence resulting from job-related concerns. With unemployment just shy of 20 percent, it will take time for job creation to put a dent in Slovakia's job shortage. Demographic factors ...
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