This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.

Activity has rebounded after a deep economic contraction, but risks to the outlook remain high. The overall impact on employment has been limited thanks to timely policy support, in particular job retention schemes.

Slovakia is recovering from the COVID-19 crisis. The impact of the crisis has been severe (). Economic activity rebounded strongly in the second half of 2020 as manufacturing output recovered quickly. However, the pace of the recovery has slowed since then and GDP remained about 1.5% below its pre-pandemic level in the third quarter of 2021. Uncertainty around the outlook remains high with relatively low vaccination rates and supply shortages, notably in the automotive sector.

Slovakia’s population is ageing rapidly, with the share of the working-age population expected to shrink by about a fifth in the next 30 years. Ageing-related costs are projected to increase much more strongly than in other EU countries and ageing will put pressure on potential growth and living standards. To prepare for an ageing society, pension, health and long-term care, as well as labour market reforms are needed to extend working lives, improve the health of the ageing population, and enhance the efficiency of public spending. Linking the retirement age to life expectancy and tightening early retirement pathways notably for mothers and disability pensioners is important to extend working lives and improve pension sustainability. Health outcome are lagging behind other OECD countries largely due to high preventable mortality, especially among disadvantaged groups, highlighting the importance of a national strategy to reduce preventable mortality, as well as targeted approaches. Measures are also needed to improve the efficiency of health and long-term care spending, notably through reforming the network of hospitals, expanding central procurement of pharmaceuticals, and expanding the supply of in-home long-term care services. Higher employment of older workers is hampered by a range of labour market barriers, including fewer training opportunities, higher job strain, and a lack of flexible working arrangements. Labour participation of mothers with young children is also low, reflecting excessively long parental leave, low financial work incentives, and a lack of childcare facilities.