The Standard & Poor's and Fitch Ratings agencies confirmed Slovakia's rating at A+ with a stable outlook on Friday. According to the TASR press agency, the agencies view high household consumption, investments from EU funds, growth in the volume of net exports and new foreign investments in the automotive industry as the chief driving forces for the Slovak economy. Slovakia's GDP growth is approaching 4 percent this year and it should achieve this level in 2019, too. Thanks to robust economic growth and gradual fiscal consolidation, Slovakia's public debt should drop below 45 percent of GDP in 2020. The Finance Ministry reacted that the rating confirmation is a result of long-term and fast economic growth, the stability of the banking sector, as well as a healthy fiscal policy.
The agencies positively evaluated the banking sector's stability, measures that have been taken to reduce household debt and stable public finances benefiting from higher tax revenues as a result of all-time low unemployment. "With regards to the fact that Slovakia is the world's leading per-capita carmaker, agencies see potential risks in the sector and geographic concentration, external factors stemming from the Slovak economy's openness and potential overheating of the economy," stated the Finance Ministry.
