In terms of long-term prospects for economic performance, Slovakia competes with 180 other countries on the 58th place in the world, finds 2018 The Growth Promise Indicators report. From the V4 countries we placed last, on the fourth place. Our weakest aspect is human capital, which takes into account the level and the system of education.
According to the authors of the study, our main strength is the openness of the economy, where we scored 8.62 points out of 10. This pillar takes into account indicators such as foreign direct investment and total trade performance.
The lowest, significantly below average score, we achieved in the human resources pillar, which includes factors such as the ratio of primary, secondary and tertiary education, the results of the knowledge tests and the average life span. Of the 10 possible points Slovakia reached only 3.66 points. All other V4 countries and our Austrian neighbors scored in this pillar at the level of 6.6 points and more, the most successful one was Poland, which scored 7.62 out of 10.
“However, it is critical that countries also invest in the right education and training to equip future generations with skills they need to thrive in 10 or 20 years time as technological advancements start to rewrite the rules of the global economy“, commented Bill Michael, Chairman and Senior Partner of KPMG in the UK.
„It is no secret that graduates of Slovak schools do not come to the labor market sufficiently prepared and in such areas as employers would like. Companies should not, however, rely on the government to solve this problem alone. On the contrary, their engagement and support in the process of change in education in Slovakia is a key to improvement", adds Ľuboš Vančo, Chairman of the Partner Board, KPMG in Slovakia.
Western European countries top the GPI league table, with the Netherlands ranking 1st, Switzerland 2nd, Luxembourg 3rd and Norway 5th. Out of the neighboring countries, the best ranking achieved Austria at 19th position. The Czech Republic placed 27th, Poland 37th and Hungary 43rd.
A GPI rating is based on 15 individual categories selected to assess countries’ productivity potential. It’s no accident that the institutions pillar is the most important component of the GPI score and has the highest weighting in the overall index. High-quality public institutions able to enforce robust civil and business legislation create an environment where entrepreneurs and businesses are happy to invest. Employment and higher productivity follow.
The Growth Promise Indicator (“GPI”) 2018 edition was first developed in 2014. The GPI report comprises 26 individual GPI series selected to assess countries’ productivity potential, based on relevant academic studies and business survey results. KPMG have covered 180 countries and the jurisdiction of Hong Kong (S.A.R) and tracked their performance since 1997. The data indicators are grouped into five key GPIs:
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