The Slovak gross domestic product increased by a record 9.4 percent year-on-year in the second quarter of this year, the local statistical office announced on Tuesday.
This figure marked the Slovak economy as the fastest-growing in Central Europe. On a quarterly basis, the GDP of the country grew by 2.7 percent. The Slovak economy is growing strongly as Western European and Asian manufacturers of cars and electronics establish factories in the country and employ local workers. Slovakia introduced a flat tax rate of 19 percent in 2004 and is now reaping the benefits of that move as labor costs remain relatively low. This former communist country with five million inhabitants joined the European Union in 2004 and plans to adopt the euro in 2009. (H)
