In May, several Central and Eastern European (CEE) countries reported key economic indicators that reflect their competitiveness and labor market dynamics. UPDATE: Slovakia just came out with their unemployment number. In the meantime, Slovenia has released its PPI, and Croatia released key labor market indicators such as their May unemployment figures and April wage growth figures.
These biannual reports provide a lifesaving picture of the region’s economic wellbeing. They illustrate the promise and challenges that characterise this diverse set of CEE nations.
Slovakia’s Declining Competitiveness
Even with Slovakia’s recent announcement of a drop in unemployment in May, it highlights the continuing perilous state of labor markets. The country is particularly positive on the infrastructure front, earning the highest score in that pillar ranking. At the same time it’s allowed its overall competitiveness to slip dramatically. Slovakia finds itself at the very bottom of these 69 countries—63rd place, having fallen 13 places since 2021.
The country’s performance in terms of business efficiency is especially alarming, landing them at 68th place. While these are positive developmental assets, they outweigh these significant challenges, which may impede long-term economic growth and stability. Recognizing these challenges, our government is looking for ways to improve efficiency in all sectors.
Czechia’s Impressive Ascent
Czechia’s notable progress in its global competitiveness ranking is a stark contrast to Slovakia’s performance. As of 2023, the country ranks 25th, a gain of nine spots since 2021. This continuing upward trend is a testament to the deliberate push to make government more cost-effective and the country’s economy more competitive.
The highest peak position of Czechia was 18th, achieved earlier in the year, marking a great economic foundation and strong stability against shifting global order. The country has proven to be one of the strongest competitors in the CEE region. It leaves even more advanced neighbors in the dust, such as Poland (52nd) and Croatia (53rd).
A Broader Perspective on the CEE Region
The bigger picture of the CEE region shows disproportionate levels of competitiveness across member states. Switzerland remains at the top of the rankings again this year, narrowly beating out the Nordic countries – another perennial powerhouse in economic performance. Some small but wealthy states in the Middle East and Asia are at the forefront of global competitiveness.
While countries like Czechia score overall higher and raise their game, countries with graver systemic problems need to play to make up lost ground stagnation risk looms. Slovenia and Croatia labor market data pairs will show regional undercurrents. Stakeholders — including economic development professionals and community leaders — can use this information to inform strategies to catalyze job and wage growth.