Major industries include steel products, chemicals, textiles and clothing, glass, and construction materials.

Energy

The chief energy source of Slovakia is hydroelectric power, an area that has also caused environmental problems as well as international dispute. The Gabcíkovo dam project began as a joint effort with Hungary in 1978, involving the construction of two dams and the diversion of the Danube River. When Hungary pulled out of the project because of environmental concerns in 1989, the Slovak government decided to complete its own half of the work. This resulted in the diversion of the Danube to a channel entirely within Slovakia, and also lowered the river level, interrupting shipping. When mediation of the problem was unsuccessful, the dispute was referred to the International Court of Justice in April 1993. Nuclear power is also a significant generating resource, contributing around 55 per cent of capacity. In the mid-1990s around 24.4 billion kilowatt-hours of electricity were generated annually.

Currency and Banking

The monetary unit of Slovakia is the Slovak koruna of 100 halier (33.15 koruna equal US$1; 1997). Slovakia and the Czech Republic agreed to a currency union after separation, but the quick decoupling of the two currencies in a matter of weeks reflected ongoing tensions between the two republics. Although both currencies started out roughly equal in value, the Slovak koruna was devalued in July 1993 by 10 per cent.
The central bank and bank of issue is the Slovak National Bank, which enjoys constitutional autonomy on the model of the German Bundesbank. Private banks have operated since the introduction of reforms in the former federal Czechoslovakia, and there are now over 30 banks operating in Slovakia.

Foreign Trade

Slovakia relies on trade, not least with its former federal partner the Czech Republic, to boost its economy; despite which, trade with the Czech Republic fell by a third following separation. In March 1993 the Czechs and Slovaks signed separate GATT (General Agreement on Tariffs and Trade) accords for international trade. Despite an agreement made with Poland and Hungary to set up a free-trade zone, Slovakia continued to have trade problems in the first half of 1993. In the mid-1990s annual exports totalled around US$8.8 billion and imports around US$8.7 billion. Chief trading partners are Russia, Germany, Poland, Hungary, Austria, and the Czech Republic. Principal exports are semi-manufactured and manufactured goods, machinery, chemicals, and food; chief imports are petroleum, machinery and transport equipment, raw materials, and chemical products.

Transport

Slovakia has a relatively modern transport infrastructure, albeit fairly low density.