S&P Cuts Slovakia's Sovereign Debt Rating on Weaker Economic Growth, High Spending

By Kelly Cloonan

S&P Global Ratings cut Slovakia's sovereign credit rating, citing projections for slower economic growth and high spending.

The ratings agency on Friday cut Slovakia's rating to A from A+. The outlook is stable.

S&P projects Slovakia's economic growth will slow to 0.5% this year, constrained by both domestic and external factors. Domestic consumption is being weighed down by weak consumer confidence and fiscal consolidation, while geopolitical and economic uncertainty is limiting export demand, the ratings agency said.

S&P forecasts Slovakia's economic growth will recover to an average of 1.9% in 2027 through 2029, but said that rate is still modest.

Additionally, Slovakia's budgetary consolidation will likely be slower than previously expected given high spending on social transfers, defense and the upcoming parliamentary elections, S&P said.

"Given the rigidity of spending, we now expect the fiscal deficit to remain elevated for longer, keeping net general government debt on an upward path," the ratings agency said.

S&P now projects Slovakia's general government fiscal deficit will average 4.8% of GDP over the next few years, pushing net government debt to 62% in 2029, or about 20 percentage points above its pre-pandemic level.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

April 24, 2026 17:03 ET (21:03 GMT)