Evaluation of financial situation of Slovak businesses after 2020

Abstract

The aim of the article is to evaluate the financial situation of businesses in the Slovak Republic after 2020 through selected economic indicators. We focus on small and medium – sized enterprises. We used available secondary data to characterize the development of basic economic indicators describing the economic situation of businesses. Moreover, we surveyed whether the businesses managed to cope with the increased inflation. According to our findings, the unfavourable economic situation caused by the pandemic had a negative impact on the creation of added value in the business sector in 2020. In 2021, there was a revival of economic activity, which was reflected in the increased creation of added value, as well as in the positive development of other economic indicators. As for the impact of inflation, businesses were on average able to transfer rising costs into sales.