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Slovenia Business Week no. 46: IMAD Keeps Growth and Inflation Forecasts Unchanged

IMAD anticipates that growth for this year and the next is to stand at around 4%, while inflation will be at around 2.5%

The Institute for Macroeconomic Analysis and Development (IMAD) has kept its growth and inflation forecasts unchanged in the final version of its autumn economic report. IMAD anticipates that growth for this year and the next is to stand at around 4%, while inflation will be at around 2.5%.

Speaking after the cabinet examined the report at its session on Thursday, 10 November, IMAD head Janez Sustersic said that there had been no new information since September that could change IMAD's outlook on the Slovenian economy.

Sustersic pointed out that several other institutions had recently released their economic forecasts for Slovenia, including the IMF, which do not differ greatly from IMAD's forecasts.

There seems to be great unity among financial institutions about the outlook for Slovenia's economy, he said.

Sustersic added that Slovenia was on track to meet the eurozone criterion on inflation by early next year because inflation was on the rise in other EU member states as a result of rising crude oil prices.

Moreover, Sustersic said that the rise in the average wage in Slovenia, which is to stand at 3.2% this year, is not likely to put additional pressure on inflation.

Meanwhile, he said that IMAD has so far not produced an estimate of the effects that the planned government-sponsored structural reforms are to have on the Slovenian economy.

According to him, the first results could be seen in 2007, with more substantial effects expected in 2008.

He said that the goal of the reforms was to speed up economic growth to around 5.5% in the 2008 to 2010 period.

Source: Slovene Press Agency STA

Author: STA