While markets throughout much of Western Europe, the United Kingdom and the United States seem increasingly volatile following the collapse of Lehman Brothers, the US bailout of AIG and the sale of Merrill Lynch, and overall economic stagnation, Slovakia continues to be the continent’s top economic performer.

According to a report published by TASR, the primary Slovak news agency, economic growth is expected to rise to 7.7 percent by the end of the current calendar year. Although this dynamic level of economic expansion is starting to slow down, the projected 6.5 percent growth rate for 2009 remains far higher than just about anywhere else in Western or Central Europe.

As a further sign that Slovakia’s economy remains healthy, the level of inflation—which currently stands at 4.4 percent—appears to be decreasing. In 2009, inflation is expected to drop off to around 3.9 percent.

The Slovak economy is doing well for a number of reasons. First, the country is not exposed to the worst impact of the current financial crisis in the West, mainly because Slovak banks had very little exposure to Lehman Brothers in recent years.

Second, the auto industry remains a powerhouse in Slovakia and it is fuelling regional economies outside Bratislava, the national capital.

Thirdly, the real estate market remains vibrant in all major Slovak cities, which is in stark contrast to the dismal prognoses regularly given concerning falling housing values in the UK.

And finally, Slovakia received a huge economic boost when the European Union agreed to allow it to adopt the euro this coming January, as this served as a resounding vote of confidence in the Slovak economy.