Page 60 - CE Outlook Regions 2022

3.4 Real economy - Slovakia

3.4.1 Retail
As in other European countries, in Slovakia the highest growth in
retail sales in 2021 was recorded for online sales, mainly as a result
of the anti-coronavirus restrictions and lockdowns, as well as the low
vaccination rate in the country. This trend is expected to continue in
2022.

Annual retail sales in Slovakia are expected to reach 2.7% in 2022,
going up to a 3.3% growth in 2023, shows Trading Economics global
macro models. VUB bank analysts are more optimistic in their latest
outlook, expecting Slovak annual retail sales to grow by 3.4% in
2022.

Despite the severe impact of the COVID-19 pandemic and the
restrictions on the performance of the retail market in Slovakia in
2021, several new shopping centres opened across the country. In
autumn 2021, the expansion of Eperia shopping centre was finished
and the new Bratislava shopping center Nivy was built.

In 2022, the Slovak retail market is expected to finish construction of
Eurovea 2 retail park, which, as noted by Cushman & Wakefield
analysts, should be the only large-scale retail project in the country
in the next quarters.

Some retail projects in Slovakia which are currently in the planning
phase are challenged by high prices of building materials, which
reduce their potential profitability.

3.4.2 Banks

Slovakia's mostly foreign-owned banking sector has been assessed
as well capitalised, with strong asset quality. During the ongoing
COVID-19 crisis, the Slovak banking sector coped well with the
economic shocks.

In 2H21, two of the Slovak banks, UniCredit Bank and Tatra Bank,
received a positive rating by the rating agency Moody's Investors
Service. Tatra banka’s long-term deposit rating was raised, based on
its long-term stable financial situation, by one notch from A3 to A2,
which is the highest level currently possible for a commercial bank in
Slovakia. For the first time, Moody's has assigned UniCredit Bank
Czech Republic and Slovakia a long-term deposit liability rating of

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