Slovak Economy Stable

Fitch Ratings announced on February 10 that it has affirmed Slovakia’s Long-Term Foreign and Local Currency Issuer Default Ratings at A+ with a stable outlook. The agency highlighted, as cited by the Pravda daily, the country’s “robust and credible economic framework”, including a solid banking sector, the country’s eurozone membership and proven ability to attract foreign investment as main drivers of developments, the TASR newswire reported. Fitch foresees Slovakia’s GDP growing at 3.3% in 2017 and 3.5% in 2018, while the figure for 2016 stood at 3.3%. The country’s public debt was stabilized in 2016, at 52.5% of GDP, and should decline gradually to 44% of GDP by 2026. Investments should benefit from a recovery in drawing EU funds, which is expected to equal €15.6 billion ($16.58 billion) or 20% of GDP in 2015, over the 2014-20 financial period, and continued foreign investment in the car industry. The overall annual output of all four carmakers (Jaguar Land Rover plus Volkswagen, Peugeot-Citroen and Kia) in Slovakia should increase by 150,000 vehicles by 2020.