Slovenia - Economic forecast summary (November 2014)


Growth will remain weak in 2015 despite strong exports, as fiscal consolidation and labour market weakness bear on consumption, and restructuring, deleveraging and low credit activity hold back investment. Growth will strengthen in 2016 as these impediments fade and domestic demand recovers. Unemployment will decline slowly and inflation is projected to be low due to the significant economic slack that will persist into 2016.

A key priority is smooth and swift corporate restructuring. Privatisation and greater openness to FDI would bring new capital and improve corporate governance. Fiscal slippage should be avoided to preserve credibility on financial markets. A thorough reform of the public sector could increase spending efficiency, while protecting the weakest segments in society. Active labour market policies should be strengthened.

Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.

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