Slovenia gets the highest credit rating among Central and Eastern European countries

The increase in credit rating reflects a strong and resilient open small economy, prudent fiscal management, and adequate foreign exchange reserves. Despite several consecutive shocks in recent years (the COVID-19 pandemic, the energy shock, and the 2023 floods), the Government managed to quickly carry out fiscal consolidation, with a fiscal deficit below 1 percent in 2024. Public debt continues to decline rapidly. On the one hand, the flexibility in state budget financing is the result of higher liquidity reserves and, on the other hand, access to a wide range of international financial markets. Furthermore, Slovenia benefits from its euro area membership, a manageable public debt level, and an efficient institutional framework.

S&P also highlights Slovenia's clear progress in economic growth; its real GDP is now a third higher than it was ten years ago, while real productivity in manufacturing industries (excluding energy-intensive industries) has increased by almost 70 percent since 2005. Over the last three years, public finance has further improved, driven by a strong economic recovery that outmatches that of most comparable countries both regionally and globally.

The stable outlook assigned by S&P reflects its expectation that Slovenia's economy and public finance will remain resilient over the next two year period.