Structural Reforms and Economic Outlook of Slovakia
Slovakia - Credit Strengths in Detail
Moderate downturn
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ARDAL
Moderate economic downturn in pandemic: -4.8% in 2020 vs. -6.3% for
Euro area in real GDP terms
Expected strong recovery after the COVID-19 crisis
Strengths
Credit
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Sound fundamentals
Fiscal discipline
Low public debt
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An export-oriented performer with balanced external accounts: moderate
current account deficits explained by investment imports
Well capitalized banking sector without government assistance
Significant but temporary impact from pandemic also in 2021: government
balance -9.9% of GDP as of May 2021*
Return to fiscal consolidation from 2023
Public debt to stabilize in 2021 below 65 % of GDP*: well below an average
in the Eurozone (102.4% of GDP).
Fiscal Responsibility Act: an essential tool for debt levels consolidation
eyes
Export oriented
Competitive export sectors with high value niches in key industrial sectors
(motor vehicles, machinery, equipment, metal products, electronics, etc.)
High credit ratings
Amongst the highest rated countries in the CEE region (A2/A+/A)
Stable outlook from two major rating agencies
*Stability Programme 2021 to 2024 based from May 2021. However, the recent macroeconomic data point to lower general government
deficit and debt. Council for Budget Responsibility estimates deficit at 7.1% of GDP.
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