Moody's: Slovakia outlook positive

Moody's Investors Service said it changed the outlook to positive from stable for the Republic of Slovakia's A3 country ceilings and government bond ratings.

Moody's said the change in outlooks reflects the results from several years of successful structural reforms carried out by the current coalition government, which has liberalized prices, privatized an overwhelming part of the banking system, introduced radical pension reforms, undertaken partial education and health sector reforms, introduced a low, single flat tax rate for personal, corporate and VAT, and sharply reduced government expenditures for social transfers and subsidies.

In the course of carrying out these reforms, the government has created one of the most liberal economic environments in the central and east European region.

Moody's believes that this policy framework - combined with the strong ongoing inflow of foreign direct investment and a skilled labor force employed for relatively low wages - should generate a period of successful economic growth accompanied by prudent fiscal and monetary policies.

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