It was 2007 when analysts could finally say that Slovaks earned more than they did when the communist regime fell in 1989. The difference was a mere 3 percent. But since then the trend has been upward, according to an analysis carried out by Poštova Banka. Converting Slovak crowns into euro, analysts calculated that Slovaks would have earned €104 per month before taxes 30 years ago. Last year the average wage reached €1,013 per month. When it comes to unemployment and the labour market, there was almost no unemployment before 1989, but in the early 1990s joblessness rose to double-digit figures. It's currently at record-low levels.
"We could say that incomes have increased around nine times since the Velvet Revolution of November 1989. However, in reality people aren't richer than at that time as price developments should be taken into account as well. They've increased seven to eight times during this period. However, people earning an average salary can now afford to buy more goods and services than before the Velvet Revolution," said bank analyst Jana Glasová. Food is relatively cheaper than before the Velvet Revolution. In order to buy the vast majority of food, Slovaks now have to work a shorter time than they did in 1989. Cars and electronics are now significantly cheaper. "What has undoubtedly changed over the years since the Velvet Revolution is the quality and availability of goods and services," concluded Glasová.
Meanwhile the Slovak Central Bank has reported that almost the entire growth in wealth of Slovak households can be ascribed to increases in the price of real estate, which makes up over 80 percent of overall household assets. It also points out that the average level of debt among Slovak households has grown along with their net wealth. The average household debt as much as doubled in three years, chiefly due to housing loans.
