Foreign investors are keeping their options open ahead of Slovakia's accession to the single European currency.

The eastern European country is due to adopt the euro at the start of 2009, a move which could potentially boost its investment potential.

However, Harish Natesan of Frost & Sullivan's electronics and security section has noted a decline in the amount of foreign investment in Slovakia this year.

This has been attributed to the global economic slowdown, although he believes overseas businesses are not ruling out the country.

He said companies in the electronics and manufacturing sector in particular are keeping a close eye on what effect Slovakia's euro accession will have on the market.

Mr Natesan added: "Manufacturers and suppliers alike are keeping their fingers crossed as to what impact this transition will have."

Jean-Claude Triche from the European Central Bank recently stated that Slovakia will benefit from the adoption of the single currency.

He stated that financial institutions such as the central bank have made preparations for the transition period.