The Slovenia Times

Eurozone Meeting Dedicated to Economic Forecast


According to unofficial sources, Slovenia can expect forecast similar to that from February, which projected the country's GDP would contract by 0.1% in 2014. In February, the Commission upgraded Slovenia's economic outlook but warned that the budget deficit would stand at 3.9% this year. It projected that Slovenia's economy would grow by 1.3% and have a 3.3% budget deficit in 2015.

In the forecast, Slovenia is the only country along with Cyprus for which the Commission forecasts a drop in GDP for this year.

Slovenia's macroeconomic imbalances will also be on the agenda of the meeting. No extraordinary news is expected as the ministers are to go over the March report of the European Commission, which said that Slovenia's imbalances had been unwinding over the past year thanks to macroeconomic adjustment and policy action, but the magnitude of the necessary "correction means that substantial risks are still present".

The report moreover highlighted risks stemming from the losses in cost competitiveness, corporate debt overhang, the increase in government debt, and weak corporate governance.

The Commission expects the headline general government deficit to remain above the targets due to the significant expenditures related to bank recapitalisation in 2013 and 2014. However, it warned that the deficit will exceed the target in 2015 assuming fiscal policy does not change.

While the EU does not normally comment on the internal matters in member states, Čufer will likely have to explain the situation in Slovenia following the resignation of Prime Minister Bratušek.


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