Republic of Slovenia: Staff Report for the 2005 Article IV Consultation

Author: International Monetary Fund

Volume/Issue: Volume 2005 Issue 253

Publication date: July 2005

ISBN: 9781451835755

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Topics covered in this book

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Banks and Banking , Exports and Imports , Inflation , Labor , Public Finance , ISCR , CR , euro , Maastricht inflation criterion , deficit , EMU convergence price index , inflation criterion , refinancing rate , upside inflation risk , Euro adoption target , inflation projection , foreign currency , Inflation , Wages , Europe , Global

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Summary

This 2005 Article IV Consultation highlights that Slovenia’s real GDP growth accelerated to 4½ percent in 2004 driven by a large positive swing in the contribution of net foreign demand, while domestic demand growth maintained momentum. Private consumption strengthened, though to a lesser extent than expected owing to an apparent increase in the propensity to save. Economic growth is expected to moderate to 4 percent in 2005, but would still be above estimates of potential. Domestic demand is expected to ease, owing to a further slowdown of inventory accumulation.