The Standard & Poor's (S&P) rating agency on Friday changed Slovakia's sovereign credit rating outlook to stable from negative and affirmed the debt grade at A+. The international rating agency cited its expectation that Slovakia's economy would rebound by 4.3% in 2021 and return to a solid growth of about 3% through 2024 as the main reason behind the revision. The recovery of the country's economy should also be supported by the continued inflow of EU funds and forthcoming private-sector investments in its automotive sector.
"We do not have any scary figures regarding a growth in unemployment or a fall in household purchasing power and, finally, we are not easing our resolution to implement a whole range of reforms in order to increase the resilience of the economy and improve life in Slovakia," Finance Minister Eduard Heger said in reaction to the rating outlook revision.
Meanwhile, the ministry noted that the pandemic had taken its toll on public finances in the form of a 2020 deficit equalling 7% of GDP. Although some fiscal measures will continue to respond to the pandemic in 2021, these will be only temporary.
