MEASURING SLOVAKIA'S MACROECONOMIC PERFORMANCE WITH KALDOR'S MAGIC SQUARE

IBRAHIM AL - NURAN OZTURK OFLUOĞLU

https://doi.org/10.53465/ER.2644-7185.2025.4.235-255

Abstract: The aim of this study is to evaluate the macroeconomic performance of Slovakia in the period 1993-2023 and to determine the impact of various social, political, and economic events on the development of the country's macroeconomic performance. To this end, a macroeconomic performance index was constructed based on the magic square method, which consists of economic growth, current account balance, inflation and unemployment variables. In order to test the consistency of this index, different indices based on different normalisation, weighting and aggregation methods were also derived. According to the index scores, the worst year in terms of macroeconomic performance was 2000 and the best year was 2018. The 2008 Economic Crisis, the Covid-19 pandemic and the Russia-Ukraine war significantly reduced Slovakia's macroeconomic performance.

Keywords: macroeconomic performance index, magic square, economic growth, current account balance, inflation, unemployment

JEL Classification: C43, E24, E31, E60, O47

Fulltext: PDF

Online publication date: 19 December 2025

To cite this article (APA style):

Ibrahim, A., Ozturk Ofluoglu, N. (2025). Measuring Slovakia’s macroeconomic performance with Kaldor’s magic square. Economic Review, 54(4), 235 ─ 255. https://doi.org/10.53465/ER.2644-7185.2025.4.235-255

Publisher: Bratislava University of Economics and Business | EUBA

ISSN 2644-7185 (online)

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.