German companies in Slovakia are facing growing cost pressures and heightened uncertainty about the country’s economic direction, according to the latest AHK World Business Outlook published by the German-Slovak Chamber of Commerce (AHK Slowakei).
The survey of 85 German firms shows that while many remain stable and operationally resilient, confidence in Slovakia’s broader economic environment has weakened sharply.
According to the report, 45% of respondents described their current business situation as “satisfactory”, 33% as “good”, and 22% as “poor”. However, expectations for the coming year are far more pessimistic: only 15% of firms expect their performance to improve, while 27% foresee a downturn.
Two-thirds (67%) of companies anticipate that the overall Slovak economy will worsen over the next 12 months – a sharp indicator of unease across sectors.
“German business in Slovakia is currently operating with the handbrake on,” said Pavel Lakatos, president of AHK Slowakei. “Many companies continue their projects, but with greater caution. The relatively stable outlook for individual firms, compared to the general economy, shows they are relying primarily on their own efficiency and resilience.”
Investment intentions among German firms have cooled significantly. Almost half (45%) of companies plan to reduce investment in the year ahead, while only 9% expect to increase it.
Employment plans reflect similar caution: around 32% of companies intend to cut staff numbers, compared to just 16% that expect to hire more workers.
“High cost pressures and weak demand in some industrial sectors are slowing down momentum,” said Lakatos. “That’s why reliable and predictable conditions are so important – businesses need stability to plan and innovate.”
Economic conditions and labour costs remain the top challenges for German firms in Slovakia.
72% of companies cite Slovakia’s overall economic framework as their main business risk.
64% identify rising labour costs as a major concern.
56% point to weak or uncertain demand.
The shortage of skilled labour, a long-standing issue, remains problematic for 44% of firms but is now seen as slightly less pressing than in previous years.
More than half (55%) of respondents also report negative effects from current US trade policy, underscoring how international tensions are affecting Slovakia’s export-oriented manufacturing base.
“These results show that global developments are clearly being felt in Slovakia,” Lakatos said. “The current US trade stance adds uncertainty for German companies, many of which are reassessing supply chains and relying more on the European single market.”
Despite their concerns, German companies continue to play a vital role in Slovakia’s public finances and employment base.
According to the Taxparency 2024 study by consultancy BMB Partners, German firms paid EUR 638 million in corporate income tax last year. When social and health insurance contributions are included, their total payments reached EUR 1.65 billion – representing 23% of all taxes and levies paid by Slovakia’s 300 largest firms.
“German investors remain a stabilising force in Slovakia,” said Eva Kusa, partner at BMB Partners. “Almost all German firms among the top 50 taxpayers are rated as ‘highly reliable’ by the tax authorities.”
Major German employers include Volkswagen Slovakia, Continental, ZF, Schaeffler, Vaillant, Lidl and Kaufland. Volkswagen Slovakia alone generated turnover of EUR 12.5 billion in 2024, making it the country’s largest company.
The AHK survey, conducted in September and October 2025, covered German-owned firms across industry (45%), trade (14%) and services (41%).
While German businesses remain among Slovakia’s most important investors and taxpayers, the chamber’s findings underline a cautious mood across sectors.
“Our members are committed to Slovakia,” Lakatos concluded, “but to keep investing in the country’s future, they need predictability and cost stability. Without that, expansion plans will remain on hold.” (The Slovak Spectator)