Price and Demand Sensitivity of the Slovakia´s Foreign Trade
Price and Demand Sensitivity of the Slovakia´s Foreign Trade

Summary/Abstract: The Slovak Republic belongs to the group of states with the open economy. The ratio of the foreign trade turnover to nominal gross domestic product (GDP) had been rising from the year 1993, when its value was 98 %, and in 1998 reached its high of around 117 %. After gradual reduction of the import surcharge to 0 % in the third quarter of 1998, and in condition of continued high domestic demand and inadequate real performance of the economy, the foreign trade balance of the SR reached a deficit of SKK 82,2 billion at the end of the year. In terms of the share in the nominal GDP, it represented 11,6 %. According to this indicator, Slovakia took a dominant position among the states of CEFTA. The deepening of external and internal imbalances established a condition for outbreak of financial crisis. The situation was more complicated due to the fact that 1998 was the election year.

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