The Slovenia Times

EBRD Downgrades 2014 Forecast for Slovenia to 2.5% Contraction


EBRD's forecast for Slovenia for 2013 remains nearly unchanged, with the bank estimating that the country's economy will contract by 2.4%, 0.1 percentage points less than in the May forecast.

EBRD said that Slovenia's exports have been increasing gradually but economy is being suffocated by weak domestic consumption, which is the result of deleveraging of companies, problems in the banking system and measures to consolidate public finance.

The institution noted that Slovenia has started the privatisation process with the sale agreement on coatings maker Helios. It would however like to see some progress in the setting up of the country's Sovereign Holding.

EBRD moreover believes that bank restructuring will take longer than planned, therefore, Slovenia's economy will not be able to get back to growth.


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