The mood among foreign investors operating in Slovakia has deteriorated markedly. The latest survey by foreign chambers of commerce and industry in Slovakia shows that sentiment has fallen to a level comparable to the start of the pandemic. Expectations for the economy have slumped to almost the same level as in March 2020, while investment activity remains subdued. As many as 40% of the companies surveyed say they would no longer choose Slovakia as an investment destination today.
Businesses view the current economic situation largely negatively. Only 4% of respondents described it as good, while as many as 61% said it was bad. Expectations for the future are even more pessimistic. Only 3% of firms expect an improvement, while 77% anticipate a deterioration.
“Expectations for the economy have reached the level last seen when the Covid-19 pandemic broke out,” chamber president Pavel Lakatos said, adding that this reflected the high degree of uncertainty in the business environment.
At the level of individual companies, the picture is somewhat more balanced, though still cautious. Some 22% of firms expect their own situation to improve, 45% foresee stagnation, and one-third expect it to worsen. Even this slightly more nuanced view, however, does not change the fact that investment momentum is lacking. Companies’ plans point more towards stagnation or slowdown. Only 28% of businesses want to increase investment, while 32% plan to cut it. A similar pattern can be seen in revenues and employment, where expectations of growth and decline are almost evenly balanced.
One major factor behind companies’ caution is rising labour costs. These are expected to increase by an average of 7.2% in 2026, while nearly half of businesses report a shortage of qualified workers.
“The continued rise in wage costs shows that structural problems in the labour market will not disappear even during a period of weaker economic performance,” said Bettina Trojer, Austrian trade counsellor in Slovakia.
Labour cost growth is also seen as a significant risk by as many as 59% of firms.
The business environment itself, however, remains the key problem. According to the survey, the biggest risk lies in economic policy conditions, which 60% of respondents identified as a concern. Companies point in particular to the unpredictability of tax and regulatory rules, which undermines investor confidence. In this context, Lakatos stressed that stable and predictable conditions were crucial for businesses and that this was precisely where investors saw the greatest room for improvement.
At the same time, the business environment is increasingly being shaped by external factors. As many as 63% of firms report higher costs as a result of tariffs, logistics and regulatory requirements, reflecting the changing geopolitical environment. Companies are therefore diversifying their supply chains and seeking new markets in an effort to reduce risk.
Despite the unfavourable sentiment, Slovakia still retains some competitive advantages. Investors rate EU membership, infrastructure and the quality of local suppliers positively. Energy infrastructure and payment discipline are also viewed relatively favourably. On the other hand, criticism is growing in areas such as the efficiency of public administration, the transparency of public procurement, the fight against corruption and the tax burden.
The result is an ambivalent picture of the country: Slovakia remains a relevant investment destination, but investor confidence has weakened. Although 59% of companies would choose the country again, the share of those that would not is rising.
“Slovakia still has important competitive advantages. At the same time, however, it is clear that these are not enough if investors are losing confidence in economic policy,” Lakatos said, adding that future developments would depend above all on policymakers’ ability to restore stability and predictability to the business environment.
The survey was conducted in March among 112 companies. It was organised by Advantage Austria in Bratislava, AHK Slowakei, the Netherlands Chamber of Commerce in the Slovak Republic, the Swedish Chamber of Commerce in the Slovak Republic, the Slovak-Austrian Chamber of Commerce, and the Italian-Slovak Chamber of Commerce. (The Slovak Spectator)