The End of Slovakia’s Convergence in GDP per Capita at PPP: Role of Shortcomings in Input Data Submitted to Eurostat

According to official statistics, Slovakia’s GDP per capita at PPP has been declining compared to the EU-27 average since 2016. This unfavorable evolution is influenced by shortcomings in the input data provided to Eurostat – especially in expenditures on housing rentals and in housing stock data. Using the Eurostat-OECD methodology for calculating purchasing power parities, we estimate alternative scenarios that correct these shortcomings. Our results still suggest that Slovakia’s convergence level has been stagnating since 2016. They are less optimistic than those by other Slovak institutions, and are not very sensitive to changes in assumptions about the prices of rentals.