SLOVENIA, April 5 - Fitch upgraded the outlook due of progress in several key areas. Public finances have been performing well over an extended period, with public debt declining for the fourth consecutive year since the COVID-19 pandemic. In 2024, debt reached 67 per cent of gross domestic product (GDP), nearing the pre-pandemic 2019 level of 66 percent of GDP. The agency projects that this downward trend will continue, with debt expected to reach 63.5% of GDP by the end of the year. Fitch also notes an improvement in structural reforms aimed at addressing the long-standing fiscal burden posed by population ageing.
According to the agency, additional strengths include the Slovenian economy’s resilience to external shocks, a sound external-trade position, as well as stable economic growth and a stable political landscape. Should the favourable trend in public finances persist, the economy remains resilient to external shocks, and medium-term growth prospects continue to strengthen, Slovenia may anticipate an upgrade of its credit rating by Fitch.
The positive trend in credit ratings continued last year. Towards the end of last year, both Moody's and Standard & Poor's also upgraded their outlooks on Slovenia's credit rating from stable to positive.