Fitch Ratings continues to positively appreciate Slovakia’s strong economic growth, mainly thanks to the inflow of foreign investment in the automotive industry, high private consumption and a stable macroeconomic and political environment.
Strong economic growth encourages the growth of tax revenues, which allows for a reduction in the general government deficit, while in 2019, Fitch Ratings assumes a balanced budget for Slovakia.
The agency positively assesses the reduction in Slovakia’s public debt, a stable and well-capitalized banking sector, low unemployment at 5% and wage increases.
Fitch Ratings considers the potentially high risks to be relatively high net external debt, the concentration of industry in the automotive sector, which faces potential stricter EU environmental measures as well as US protectionist policy and the still high (household indebtedness.
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