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Austrian Analyst: Price Level in Slovakia Approaching Austria
Saturday 30 Octtber 2010 Zoom in | Print page
Vienna/Bratislava, October 30 (TASR) - Austrians' shopping tourism in Slovakia has fallen after Slovakia introduced euro almost two years ago, Peter Havlik from Vienna Institute for International Economic Studies has told TASR.
At the same time, the price levels in the two countries are slowly balancing out, albeit the overall price level in Slovakia is still lower than in Austria. Several factors should be taken into account, however.
"First of all it's regional differences. I think that Bratislava and western Slovakia aren't significantly cheaper than the eastern part of Austria with the states of Burgenland and Lower Austria," said Havlik.
The prices of services, such as transport, education and healthcare are lower in Slovakia. The difference in the prices of food and consumer goods has been reduced, however. "The striking price difference that was to be seen five or ten years ago isn't visible anymore," said Havlik.
Slovakia is approaching Austria in prices more rapidly than in salaries, however. While the average monthly salary reached €2,800 in Austria last year, it was only around €800 in Slovakia.
"Both the salary level and the overall quality of life are balancing out gradually. While 10 years ago Slovakia's purchasing power parity was at around 50 percent of the EU average, it's now more than 70 percent," said Havlik, adding that due to the stronger effects of the economic crisis in Slovakia the economic difference between Austria and Slovakia has risen again.
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