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IMF Upgrades Growth for Slovenia

Published: April 9, 2014; 10:10 · (Vindobona)

In its latest report the International Monetary Fund has raised its projection for GDP growth in Slovenia.

The Slovenian economy is slowly recovering. / Picture: © Wikimedia Commons [CC0 1.0] / Pixabay [CC0 Creative Commons]

The IMF raised growth expectations in Slovenia from 1.1 percent contraction, which was projected in January, to 0.3 percent growth in its latest report. In 2015, Slovenia’s economy is expected to increase by 0.9 percent. Compared to the forecasts by Slovenian institutions, the projections by the IMF have been pessimistic. However, the latest estimates are proving that the economy in Slovenia is starting to recover again.

In 2013, GDP shrank by 1.1 percent even though the last quarter in 2013 saw a growth rate of 2.1 percent compared to the same period in 2012, as reported by the Slovenian Statistics Office. Moreover, the public think-tank IMAD upgraded its forecast for economic growth in March. The instititue now projects a growth of 0.5 percent after having estimated a contraction of 0.8 percent last autumn.

According to the IMF’s World Economic Outlook report for this year, Slovenia will face the biggest uncertainties in the financial sector and the restructuring of enterprises. Inflation is expected to come at 1.2 percent this year wile the unemployment rate is projected to slightly increase to 10.4 percent, up by 0.3 percentage points compared to last year.

This year, the expected budget deficit comes at 4.2 percent of GDP. The planned recapitalization of Abanka and Banka Celje in the amount of € 320m has already been taken into account.