Slovenia’s credit rating has been raised to A+
Japan’s R&I service raised Slovenia’s foreign currency credit rating. The country has been assigned an A+ rating. When revising the rating, experts considered a wide range of factors and analyzed the state of the country’s overall economy.
The main argument in favor of the upgrade was the country’s high external stability. Slovenia’s economy consistently runs a current account surplus. However, it is quite small compared to other EU countries. Its distinctive feature is its structural vulnerability to fluctuations in external demand.
The country has assets with high potential, making it attractive to international investors. One of the key pillars of the economy is its developed industrial base. It generates a GDP of over US$30,000 per capita. Slovenia’s industrial cluster includes manufacturers of automotive components and pharmaceutical products. The government promotes R&D sector development. It stimulates foreign investment inflows and increases its own spending on scientific research.
Overview of the situation in the country
R&I estimated, Slovenia’s fiscal balance will improve in the near term. At the same time, a reduction in public debt can be expected.
As for the growth dynamics of the local economy, the situation is as follows:
1. Real GDP growth in 2024 was 1.6%.
2. The dynamics declined as a result of a decrease in investment activity in the construction sector. In addition, exports in the equipment and machinery segment declined.
3. The first quarter of 2025 resulted in a decline in economic indicators. Against the backdrop of global uncertainty, investment and exports declined.
4. There are no problems in the local economy that could put pressure on development prospects. In addition, private sector debt is under control, and the financial sector is stable.
According to the Bank of Slovenia’s forecasts, real GDP growth will reach 1.3% by the end of 2025. In 2026, it will reach 2.4%. The balance of payments is stable. The transport sector plays an important role in this. In recent years, the trade balance has not exceeded 1% of GDP and has remained positive.
The services sector is the key driver of the surplus. According to analysts, this trend will continue unless global processes exert pressure. Most notably, this refers to the sharp rise in energy prices.
The international investment position is oriented toward a level at which financial assets exceed liabilities. At the same time, the agency does not foresee any decline in stability in this segment.
Overall, Slovenia’s economy remains stable and attractive to foreign investment. The country provides a high level of government support and financial process transparency.
