The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper evaluates competitiveness in Slovakia and estimates the equilibrium real exchange rate path for the koruna. It takes stock of Slovakia's growth performance over the past decade and assesses its growth potential over the medium term. It estimates the equilibrium real exchange rate appreciation in Slovakia using cross-section and time-series methods. The paper also presents production function estimates of potential output for Slovakia that imply sustainable rates of growth of 4.5-5.0 percent over the next five years.