The Slovak economy is considered an advanced economy, with the country dubbed the "Tatra Tiger". Slovakia transformed from a centrally planned economy to a market-driven economy. Major privatizations are nearly complete, the banking sector is almost completely in private hands, and foreign investment has risen.
Slovakia has recently been characterized by sustained high economic growth. In 2006, Slovakia achieved the highest growth of GDP (8.9%) among the members of the OECD. The annual GDP growth in 2007 is estimated at 10% with a record level of 14% reached in the fourth quarter. According to Eurostat data, Slovak PPS GDP per capita stood at 72 percent of the EU average in 2008.
Unemployment, peaking at 19.2% at the end of 1999, decreased to 7.51% in October 2008 according to the Statistical Office of the Slovak Republic. In addition to economic growth, migration of workers to other EU countries also contributed to this reduction. According to Eurostat, which uses a calculation method different from that of the Statistical Office of the Slovak Republic, the unemployment rate is still the second highest after Spain in the EU-15 group, at 9.9%.
Inflation dropped from an average annual rate of 12.0% in 2000 to just 3.3% in 2002, the election year, but it rose again in 2003–2004 because of rising labor costs and excess taxes. It reached 3.7% in 2005.
Slovakia adopted the Euro currency on 1 January 2009 as the 16th member of the Eurozone. The euro in Slovakia was approved by the European commission on 7 May 2008. The Slovak koruna was revalued on 28 May 2008 to 30.126 for 1 euro, which was also the exchange rate for the euro.
Slovakia is an attractive country for foreign investors mainly because of its low wages, low tax rates and well educated labour force. In recent years, Slovakia has been pursuing a policy of encouraging foreign investment. FDI inflow grew more than 600% from 2000 and cumulatively reached an all-time high of $17
