The Slovenia Times

IMF downgrades Slovenia's GDP growth projection to 2.9%


In its latest World Economic Outlook Report, the IMF says that the growth rate of 2.9% is also expected to be recorded in Slovenia in 2020.

Inflation in Slovenia is meanwhile projected to stand at 1.8% this year, and at 1.9% next year.

Despite the expected slowdown in economic growth, the survey unemployment rate is projected to further decrease this year to 4.5%, from 5.1% in 2018. It is expected to stay at this level in 2020.

The downgrade of Slovenia's GDP growth outlook by half a percentage point to 2.9% follows the correction by the IMAD, which downgraded it by 0.6 percentage points to 2.8% in mid-September.

In comparison to its spring forecast, the government think tank also downgraded at the time the projection for 2020 by 0.1 of a percentage point to 3%.

Projections of Slovenia's GDP growth for this year by other international and domestic institutions are also expected to be adjusted, very likely with downgrades.

The downgrade by IMAD was a consequence of the slowdown of economic growth in Slovenia's trade partners and outlooks for until the end of the year which affect exports and investments of the export sector.

The slowdown of growth in the international environment is largely a consequence of increased risks which the IMF also warns about, saying that these are a consequence of the trade war between China and the US, among other things.

Other factors affecting Europe are macroeconomic tensions in numerous developing markets and structural factors such as a low productivity growth and the population ageing in the developed world, it added.


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