Survey: Slovakia's Economic Growth Faces Potential Weakening

Bratislava, April 12 (TASR) - If Slovakia fails to experience an economic recovery, it risks not only job losses but also a decline in the country’s overall economic growth, according to the latest survey by Intrum, which included 9,000 companies from 25 European countries, including 240 Slovak businesses. "The results of our survey highlight stagnation in the Slovak business environment. Although incomes in Slovakia are recovering at the fastest pace in Europe, more than half of businesses are still facing issues with payment insolvency and demand from customers. Furthermore, payment discipline is yet to return to pre-pandemic levels. Naturally, companies are concerned," explained company executive director Martin Musil. Nearly half of the executives surveyed said that their businesses' earnings aren't recovering as quickly as expected. Companies in the telecommunications, construction, mineral-mining and networking sectors confirmed the most pronounced differences. Fifty-four percent of businesses noted issues with demand. To protect business relationships, 57 percent of companies have accepted unfavourable payment terms, and 45 percent have agreed to longer payment deadlines in order to prevent customer bankruptcies. According to experts, these measures naturally place an additional financial burden on companies, which have pessimistic expectations for the future. In addition, 22 percent of companies confirmed that if economic conditions don't improve, there's a risk that they may cease to operate within the next two years. "It's therefore essential for companies to invest in more efficient financial processes, risk management and sustainable financial strategies," said Musil. lin/df