This paper reviews economic developments in Slovakia during 1995-96. Slovakia registered an impressive macroeconomic performance in 1995, among the best within the transition economies. Growth accelerated to 7.5 percent in 1995 from an already high rate of 5 percent in 1994, and inflation fell to 7 percent from about 12 percent in 1994. In addition, the current account of the balance of payments registered a surplus of about 2 percent of GDP. In 1996, output continued to grow at about 7 percent while inflation declined to 5.4 percent.