Business Competitiveness after Euro Adoption in Slovakia

Slovak enterprises recorded significant worsening of economic and financial indicators in the time after euro adoption. Dramatic changes in the results of non-financial corporations were observed in most of the EU countries. The main driving factor was a drop in global demand. Some indicators suggest that the adoption of the euro and consequent effective exchange rate appreciation could have an additional negative effect on selected services. Decrease in price and cost competitiveness was only temporary. Tradable sector represented mainly by manufacturing seems to be sufficiently competitive. With gradual recovery of the global economy we can see a growing importance of previously identified competitiveness factors: support of research and development, education and innovations.business competitiveness, impact of euro adoption