IMF forecasts slight deterioration of Slovenia's finances

Ljubljana, 10 October (STA) - Slovenia's fiscal position will deteriorate slightly in the coming years. After a surplus of 0.2% of GDP in 2018, the general government balance is expected to slip back into deficit, where it is projected to remain for the next five years, shows the latest Fiscal Monitor, a publication of the International Monetary Fund (IMF).

The projection assumes that until 2023, Slovenia will remain in deficit, which will deepen from 0.1% of GDP next year to 0.5% of GDP at the end of the period.

The projection is more pessimistic than forecasts by the Slovenian Statistics Office, which assumes the deficit will hit 0.4% this year and widen in the coming years.

There is also a significant difference between the two institutions for 2017: the IMF says Slovenia recorded a 0.8% deficit, while Statistics Office data in fact show a 0.1% surplus.

At the same time, the IMF projects that Slovenia will continue posting a high primary surplus - surplus before debt payments - which is to hit 2% this year before tailing off to 1.4% in 2023.

Gross debt is also expected to drop, from almost 70% of GDP this year to 61.4% in 2023.