Slovakia 'next in line to join euro'
15th March 2007

In a move which may benefit foreign property investors, favourable economic conditions within Slovakia are expected to see the country seek to adopt the euro in 2009, according to a new report.

Economists from the UniCredit Group have predicted that, following Slovenia's decision to join the single currency at the start of this year, Slovakia is on course to meet the criteria outlined by the EU within a few years, the Sofia Echo reports.

The firm has suggested that the country's economy will continue to enjoy solid growth after its GDP - fuelled by the manufacturing sector - increased at an annual rate of 7.8 per cent last year.

Commenting on the country's buoyant economy, Debora Revoltella, chief economist for central and eastern Europe at the UniCredit Group, said: "Car manufacturers like VW, Kia or PSA Peugeot Citroen have expanded their production capacity in Slovakia.

"Companies in the electronics industry like Sony and Samsung have also expanded their production facilities."

There is a 70 per cent chance that the country will now meet the EU's criteria by 2008, before joining the euro by the start of 2009, Ms Revoltella was quoted as saying.

The Times of Oman recently reported that the town of Zilina, in the north-west of the country, has seen tremendous growth since Kia chose to open its first European factory in the region.

Since 2004, when the vehicle manufacturer invested in the area, the local property market has seen house prices rise by 30 per cent.

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