Structural Reforms and Economic Outlook of Slovakia slide image

Structural Reforms and Economic Outlook of Slovakia

Slovakia - Credit Strengths in Detail Moderate downturn • 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 # Sound fundamentals Fiscal discipline Low public debt • 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. 牛 5
View entire presentation