The Moody’s Investors Service rating agency revised its rating for Slovakia from negative to stable on October 5. The rating, currently at the A2 level, is not expected to change in the short term, the SITA newswire reported.
Slovakia’s improved outlook came due to expectations that its public debt in 2014 will stabilize below 57 percent of GDP, the agency said, as reported by SITA. The agency also trusts the government’s commitment to preserve the sustainability of public finances.
The pace of fiscal consolidation is expected to be rather slow, but it should be supported by the expected economic revival.
Slovakia’s macroeconomic factors however do not reflect a revival. Particularly, the country’s export rate slowed down compared to 2011, due to lower demand from abroad. While Moody’s does not expect that to change in the short term, it does expect domestic consumption to grow, SITA wrote.
The agency anticipates that Slovakia’s economic growth will go up to 2.8 percent in the next year, compared to the current 0.9 percent.
Another reason for Moody’s improved rating is the limited impact of the debt crisis on Slovakia. The country’s financial system is firm and healthy, SITA reported.