Slovenia Cannot Escape the Vicious Circle

Politics ♦ Published: October 10, 2013; 06:22 ♦ (Vindobona)

Slovenia still aims to manage its banking crisis on its own. After the new economic forecast issued by Slovenia´s National Bank, this aim suffers another setback.

Slovenia Cannot Escape the Vicious Circle / Picture: © European Commission

According to the Slovenian National Bank (SNB), the Slovenian economy will shrink by 2.6% in 2013. Next year, SNB expects GDP to contract 0.6%. Compared to the spring forecasts, SNB´s estimations had to be lowered significantly. SNB predicts that the country will not leave the recession behind before 2015.

SNB notes that Slovenia´s recession is mainly due to the unsolved…