The Slovenia Times

Govt forecaster, business agree on need for structural reform

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"It is worrying that we will stay at a level that is approximately only half of what we know we are capable of. Structural reforms are needed if the pre-crisis level is to be achieved," Vasle said in the debate following an IMAD downgrade of Slovenia's GDP forecast for this year to 1.7%.

GZS president Marjan Mačkošek agreed, while claiming the government was not being bold enough and was not using proposals being put forward by the GZS.

Highlighting insufficient productivity, the ageing populating and unbalanced public finances as key issues, Vasle said that the need to find compromise among the different coalition parties was slowing down measures.

Speaking about the expectations for this year, he said developments in Slovenia would be marked by a more negative outlook for the international environment and a substantial drop in state investment.

He expects exports, which rose by 5.2% last year, to remain a key factor and grow by another 3.7%. Private consumption, which started picking up last year, is also projected to strengthen further as a result of a drop in unemployment.

Vasle expects that deflation will end next year. He feels that if lower oil prices were to translate into lower prices in general, this would be a cause for concern.

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