JCRA affirms Slovenia's AA- credit rating, outlook stable

"Slovenia's high credit rating is based on good foundations for economic development, strong resistance to external shocks and membership in the European Union and the eurozone," the Slovenian government said in a statement earlier this week, quoting a report by JCRA.

JCRA sees the relatively high share of public debt as a share of Slovenia's gross domestic product (GDP) as a challenge, but is confident that the government will continue to conduct a prudent fiscal policy, the statement reads.

According to JCRA forecasts, Slovenia's economic growth will exceed 2% in 2024 and 2025, and the JCR also highlights the higher liquidity reserves of the state budget as positive.

Last week, the European Commission slightly downgraded its economic growth forecast for Slovenia in 2024 to 1.9% from 2.0% predicted in November. Slovenia's economy is expected to expand by 2.7% in 2025, the Commission said in its Winter 2024 Economic Forecast report.