Growth is projected at 0.7% in 2026 and 1.6% in 2027. The global energy price shock and weak automotive production constrain trade and consumption. Absorption of EU funds will continue to support investment in 2026 but heightened economic uncertainty will dampen capital formation going forward. Persistently higher energy prices, the future fiscal consolidation mix, and lower-than-expected growth in Europe, especially in the automotive sector, represent clear downside risks to the outlook.

To ensure that the needed fiscal adjustment path is achieved, it is key to keep shifting its composition from revenue increases to spending restraint. Improving the efficiency of public spending, including by strengthening project preparation and implementation capacity, can improve the use of EU funds. Better targeting of energy subsidies would ease the significant burden on the budget, remove distortions, and encourage energy-efficiency efforts. Cutting red tape while strengthening the rule of law would durably boost growth prospects.

Economic convergence has lost momentum. Productivity growth has weakened, with the slowdown reflecting declining foreign direct investment, waning benefits from integration into global value chains, and persistently low innovation. Fixed investment remains subdued, limiting capital deepening relative to more advanced economies. Labour utilisation is also lagging. Employment and participation rates remain below those of peer countries, particularly among mothers with young children, contributing to a persistent gap in GDP per capita.

To reinvigorate growth, policy should focus on enhancing the innovation ecosystem, fostering a business environment more conducive to investment in new technologies and knowledge-based capital, and improving health outcomes. Improving the quality and relevance of education and training systems, bringing young mothers into the workforce alongside better activation policies targeted at re-skilling low-skilled individuals and people at risk of displacement, will also be key to alleviating skills shortages and increasing labour participation.

Throughout this journey, the OECD has provided policy analysis, comparative evidence and concrete recommendations through its Economic Surveys.

This collection highlights this dialogue and continues reform by bringing together 25 recommendations and subsequent reforms across five key areas.

Each note presents an OECD recommendation, the context in which it was made, and the actions taken by Slovakia in response. Together, they illustrate how evidence-based advice and national commitment have helped the Slovak Republic foster progress and raise living standards for its population.