Globsec Chief Economist: Investment Debt in Slovakia Keeps Increasing

Bratislava, April 18 (TASR) - Globsec chief economist Vladimir Vano reported a press conference on Thursday that according to data from the Institute for Strategies and Analyses of the Government Office and the Value for Money Unit of the Finance Ministry, investment debt in Slovakia has climbed to at least €40 billion, which is equivalent to 37 percent of the country's GDP in 2022. According to Vano, one of the most dire situations can be observed in the area of transport infrastructure, in which the debt has reached approximately €15 billion for the next ten years. Other significant deficits are in the areas of water supply, sanitation and flood protection (€5.5 billion) and state-provided healthcare (€4.7 billion). Meanwhile, the International Monetary Fund (IMF) has long pointed to substantial gaps between Central and Eastern European Countries and the EU-15 in terms of the quantity and quality of infrastructure. "Bridging just 50 percent of this infrastructure gap by 2030 could require annual investment equivalent to 3-8 percent of GDP. In addition, there is an urgent need to prioritise resources for green and climate-resilient infrastructure projects to address environmental challenges. Investment debt related to the need to build infrastructure, such as in the case of the critical condition of bridges, underscores the urgent need for strategic intervention by the government. Moreover, without investment in infrastructure, it isn't even possible to continue to catch up with economic activity at the level of the EU average," Vano added. In order to address the situation, according to Vano, there is a need for extended cooperation between the government and investors from the private sector. "Collaborative efforts between the public and private sectors can unlock innovative financing mechanisms and ensure efficient allocation of resources. That is why Globsec, through activities of its Investment Development Council, wants to raise public and stakeholder awareness of infrastructure challenges in the CEE region and their implications for economic growth, competitiveness and regional integration," he remarked. zel