One of the most frequently cited problems is the shortage of telephone lines for both business and residential subscribers all over the country. Nevertheless, there is no question that private enterprise is taking hold. Almost two million small new business were established between 1989, when an easy registration system was instituted, and December 1993. Many of them received two-year tax exemptions. A significant share of the state-owned sector is now in private hands, and private enterprise is finally taking hold.
All signs point to good growth prospects without a corresponding upswing in inflation.
Real GDP, meanwhile, is clearly on the recovery. On the external front, major steps have been taken to redirect the country's trade away from its former Comecon partners and create markets in Western Europe. Slovakia still has a trade deficit, but it has steadily decreased as exports have become more competitive in international markets. Restructuring of the economy is continuing apace. Like other Eastern European nations, Slovakia has used different privatization schemes.