Slovakia keeps A+ rating with stable perspective

In reaction to the strong economic growth, stabile public finances and low tax burden of the public sector, Slovakia has maintained its A+ rating with a stable perspective, reported the Economy Ministry last week. The score was confirmed by the Standard and Poor's (S&P) rating agency. The agency expects fast economic growth at the level of 3.8% this year and 4.2% in 2019. Strong economic growth is expected to be fuelled by investment into the car making industry, which should increase its production potential by 40% over the next five years. According to S&P, being part of the Eurozone also has a positive impact on Slovakia since the Central European Bank contributes to the low interest rates of Slovak state bonds. The agency also expects a decrease in the public debt. The rating, however, is restricted by the low GDP per capita, under the EU average, as well as a regional gap and lack of investments into Education and Health care. Another risk could be the fast-growing indebtedness of households, the fastest in central and eastern Europe.