The Slovenia Times

EU Upgrades Slovenia's 2014 GDP Forecast to 0.8% Growth


According to the European Commission's spring forecast, released on Monday, Slovenia will see its economy expand by 1.4% next year, a 0.1 percentage point upgrade.

Presenting the report in Brussels, European Transport Commissioner Siim Kallas said that the EU expected that the political instability in Slovenia will end and that the country will fulfil its commitments as a member of the eurozone.

The economic forecast for Slovenia has improved and the country exited the recession last year, but some risks in terms of the fiscal position remain, Kallas said on behalf of Commissioner for Economic and Monetary Affairs Olli Rehn.

Projections about the budget deficit are less optimistic, though, as the Commission expects a deficit of 3.9% of GDP this year, which is on par with the February forecast, and a 3.3% deficit in 2015, still above the 3% threshold.

The projected budget deficits for 2014 and 2015 are below the figures recommended by the European Commission, which stand at 3.3% and 2.5%, respectively.

The deficit forecast for this year takes into account the planned recapitalisation of the Abanka and Banka Celje banks.

The Commission meanwhile expects that the general government debt will stand at 80.4% of GDP this year, and to increase to 81.3% in 2015.

Unemployment rate projections have improved somewhat. The rate is expected to stand at 10.1% this year and at 9.8% in 2015, both of which is below the EU and eurozone averages.

Inflation is expected to remain low in the entire EU and eurozone. Slovenia is projected to have 0.7% inflation this year and 1.2% inflation in 2015.


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