Over the last decade, the Slovak economy has passed a number of significant changes. This was particularly the transition from centrally planned to market economies, implementation of essential reforms, but also the entry of Slovakia into the European Union and adoption of the single European currency. All these changes have contributed to substantial economic growth and increased competitiveness of the country. Slovak Republic was in recent years among the fastest growing economies in the Europe. Its growth has been one of the fastest in the Member States of the European Union, and since 2001 was well above average of economic growth in the EU.
Table 1: The current macroeconomic developments of the Slovak Republic
Indicators 2010 2011 2012 2013 2014
GDP growth (%) 4,1 4,6 3,1 1,4 3,5 Inflation (%) 0,7 4,1 3,7 1,5 -0,1 Unemployment rate (%) 14,4 13,6 14,0 14,2 12,3 The average wage (€) 769 786 805 824 837 State budget deficit
(% from GDP) 7,7 5,1 4,4 2,8 2,6 Public debt
(% from GDP) 41,0 43,3 52,1 55,4 54,9
Source: edited by source [5]
The Slovak Republic has a long-standing problem of unemployment and regularly is among the countries with the worst results in this macroeconomic indicator. Among EU Member States, however, maintained a good position to overcome impact of the economic crisis. Even after a slowdown in 2013, Slovakia in compared with pre-crisis period has the third highest real
creation of added value compared to pre-crisis level of 0.9% in the euro area by 1.8%. Morvay (2013) The objectives of economic policy of the Slovak government is react to the current economic situation, while the priority is remains ensuring sustainable growth of the economy as a precondition for rapid growth in living standards. Membership in the euro area and the integration of monetary policy increased the importance of a responsible fiscal policy based on sound and sustainable public finances and the effective operation of automatic stabilizers and structural policies aimed at increasing growth of the economy's potential.
Czech Republic reached during the last ten years, on average the lowest single-digit of value unemployment rate, it is the average value of the indicator was 7.02% (in Hungary it was 7.46%, in Poland 14.32% and in the Slovak Republic 15.05%). During the whole period it was below the EU27 average. Just as in Poland and the Czech Republic, despite the crisis it managed to reduce the overall unemployment rate. A long-term problem and the brake not only in the pre- crisis, but also in the post-crisis period is an aging population also system of benefits and low motivation of people to return to work. (Janku, Janku, 2010) Priorities of the Czech government in times of crisis are become supports unemployment, investment in research, education, information technology, infrastructure and the strengthening of domestic demand (Narodni protikrizovy plan vlady, 2009).
Serious problem in currently, it is particularly long-term sustainability of Czech public finances, which are currently belong among the worst in the European Union. Czech Republic take steps to end the excessive government deficit in 2013. In particular, expenditures to support growth like as public investment recorded a sharp cumulative decline between 2010 and 2012. This fact together with low use of structural funds threatens the long-term growth prospects. The reform of the pension system in 2011 was improved long-term sustainability of public finances. In 2013 Czech Republic reached 81 percent of the EU average, in 2020 could be in the order 85-86 percent level. In the last fifteen year was the Czech Republic approaching the EU average rate of 0.3 percentage point per year, what is more slowly than other Central European economies.
Table 2: The current macroeconomic developments of the Czech Republic
Indicators 2010 2011 2012 2013 2014
GDP growth (%) 2,3 2,0 -0,8 -0,7 2,5
Inflation (%) 1,5 1,9 3,3 1,4 0,1
Unemployment rate (%) 7,3 6,7 7,1 7,0 7,1
The average wage (€) 873,2 876,9 917,3 917,5 912,4
State budget deficit
(% from GDP) -4,7 -3,2 -4,2 -1,5 -2,0
Public debt
(% from GDP) 38,7 41,4 46,1 46,0 39,0
Source:[7]
Year 2014 brought in Czech Republic slight recovery, GDP growth slightly exceeded 2% and participated in it all the components of aggregate demand - consumption, investment, government expenditures and net exports. However, dominant was the domestic consumption demand and investment activity of companies. In 2015 is expected to grow at 2.5%. Better economic situation was reflected in employment, the unemployment rate fell from 7% in 2013 to 6.1% in 2014. The risk of inflation is the price development of the situation in Eurozone, where a relatively slow economic growth coupled with fall in prices of energy and with agricultural commodities in the markets increases the risk of deflation.
Poland is country of V4 with the largest swing in development of GDP. In 1999 the country reached the highest economic growth rate (4.5%) with compared to the other V4 countries and the European Union average, which at that time was at 3%. Until the emergence of the financial and depression crisis, it was the second fastest growing country of V4. Poland, as the only European Union country, was maintaining a positive rate of growth; at 1.6% in 2009 The anti- crisis program in year was aimed at stabilizing the state budget and constraints of public expenditures. The priorities were job protection, assistance with mortgage repayment in case of loss of employment, accelerate energy of investments financed from EU funds and maintain the planned amount of the deficit of the state budget. The investigation by the temporary withdrawal of the annual indexation of salaries for civil servants have been introduced, have been simplified the access of small and medium-sized enterprises to financial and credit resources, have been increased emphasis on projects funded by European funds and have been created simple system of export support.
In the country has been made extensive efforts to reduce unemployment rate of young. The government put forward a number of reforms in education and training. In September 2013 was adopted a strategy of lifelong learning. [8] Polish economy in 2014 appreciated by 3.4%, the budget deficit should decline in 2015 to 2.5% of GDP from 3.5% of GDP in 2014.
Table 3: The current macroeconomic developments of the Republic of Poland
Indicators 2010 2011 2012 2013 2014
GDP growth (%) 3,8 4,3 1,9 1,6 3,4 Inflation (%) 2,6 4,3 3,7 0,9 0,3 Unemployment rate (%) 12,3 12,5 13,4 13,4 12,0 The average wage (€) 823,8 864,6 844,4 875,4 945,6 State budget deficit
(% from GDP) -7,5 -5,0 -3,9 -4,3 -3,5 Public debt
(% from GDP) 54,5 56,5 55,6 55,4 54,5
Source: GUS, EUROSTAT a DAP MG (Department analyzes and forecasts MH PR)
Poland is thus within the European Union joined the countries that consolidating their public finances at the fastest pace. Polish budget deficit reached its peak in 2010, when it was at almost 8 percent. The main reason for lower budget deficits is a new rule that has in 2015 to limit government expenditures. Poland is the largest economy in Central and Eastern Europe, and as well as other member countries had the task by 2015 to reduce own the deficit below the level three percent of GDP, which was not anyone except the Czech Republic.
Hungary was the only country of V4 with a relatively stable development of GDP by 2006. The economy of the country as a result of unrealized reforms came into a very difficult situation, which was more exacerbated the financial and economic crisis. It was increased the deficit of the current account of balance of payments and gross external debt, which resulted in growing insolvency of the country. The crisis decreased the growth rate of the Hungarian economy in 2009 by - 6.8%. Similarly, a negative development of an indicator indicating a growth rate of GDP per capita, which in that year fell by up to - 6.5%. In Hungary was recorded positive economic growth already in 2010, when GDP grew over the previous year by 1.3%.
Hungary is the only country which recorded continuous growth in the unemployment rate since 2001. By the year 2005 had the lowest unemployment rate. Over the years 2001-2005 was the value of these indicator ranged the range of 5.7% to 7.2%. Since 2007 is the unemployment rate in the country higher than the average unemployment rate in the EU27. Impact of the recession was even more increased problems in the labor market and the rise in unemployment
has accelerated. In 2010 the indicator value was the second highest in the V4 countries, at the level of 11.2%.
The economic crisis descended upon to Hungary, too. It was because their credit expansion financed from abroad. The aim of the program at "Journey to work" was to align the system with social Membership support and support of employment through public works. They also started to apply measures in a better use of European Union funds, which are aimed mainly at promoting cross-border cooperation.
Table 4: The current macroeconomic developments of Hungary
Indicators 2010 2011 2012 2013 2014
GDP growth (%) 1,1 1,6 -1,7 1,5 3,3
Inflation (%) 4,9 3,9 5,7 1,7 0,1
Unemployment rate (%) 11,2 10,9 10,7 10,0 7,8
The average wage (€) 728,8 730,1 753,4 770 778,4
State budget deficit (%
from GDP) -6,5 -5,0 -3,9 -4,3 -3,9
Public debt
(% from GDP) 55,5 56,4 55,6 56,4 56,1
Edited by source: [9]
Hungarian economic growth was lower than in other countries in this region - Slovakia, Czech, Poland. The cause was not only reducing leverage in indebted sectors, but a deterioration of the business environment. The labor market is lags behind the average of EU with overall low rates of employment. The unemployment rate of young and long-term unemployment is the main source of negative labor market. It is preparing the system guarantee for young people. Large-scale programs of public works, which the government introduced in 2011, helped prevent the spread of unemployment, but no long-term effects of these measures on employability has to occur yet.
Conclusion
Enter to the European Union has brought benefits to Visegrad states. Benefits was in form as growth of their economic power, it increased exports and improved the quality of living standards. The efficiency of national economies represented only 3,7% of total efficiency of all EU countries. Already in 2013 their total share on GDP improved approximately by half – to 5.4%. Entry into the Union provides for businesses from Visegrad states new opportunities for businesses. It makes available the market for them with more than 500 million clients, what cause the export development more dynamic in all countries. Export was one of the most important advantages in the region. Countries from Visegrad group have not only intellectual and political potential, but also real force to handle the current turbulent changes and help to Europe politically and economically to solve them to get over them. To enforce their vision of solutions to European affair is necessary to search consensus and support other countries, as every smaller country independently has too small chances to enforce those solutions in the European policy field.
Acknowledgment
This paper is an output of the science project, which is co-financed from EU funds, called „Quality of education and human resource development as the pillars of a knowledge society at the Faculty PEDAS University of Žilina“, ITMS project code 26110230083“, addressing the University of Žilina in Žilina.
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