S&P Global Ratings revised its outlook on Slovenia to positive from stable, citing growth dynamics that are strong but exhibit no symptoms of economic overheating.

Slovenia's long-term and short-term foreign and local currency sovereign credit ratings were affirmed at A+/A-1.

The rating agency projects Slovenia's economy to grow by 4.6% in 2018 following a 5.0% expansion in 2017. Exports are expected to remain the main growth driver, but investment and private consumption are also seen as contributors.

"The [growth] momentum is now broad-based, with a pick-up in private consumption and loosening post-crisis household-spending restraints," S&P said. "Consumption is benefiting from rising confidence as wages and disposable incomes grow alongside favorable financial conditions."

Major risks to Slovenia's economy could come from external macroeconomic developments, such as escalating trade conflicts or a slowdown in the eurozone, according to S&P.

Slovenia could receive a ratings upgrade in the next 12 to 24 months if economic growth continues without macroeconomic imbalances emerging, or if the decline in government debt is sustained, S&P said.

S&P forecasts Slovenia's net general government debt to fall below 50% by 2021 from 55% in 2018.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.