IMF Staff Country Reports

Republic of Slovenia : 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Slovenia

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

February 18, 2019

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Article IV Consultation highlights Slovenia’s need for continued structural reforms to ensure long-term prosperity, along with strengthening the economy’s resilience to shocks. Effective implementation of recently enacted reforms to vocational training, apprenticeship, and adult education would help address skill shortages, support employment of younger and older people, and boost productivity growth. Macro-financial legacy issues remain on bank and corporate balance sheets, including small and medium enterprises’ nonperforming loans. Structural challenges persist, with low productivity growth, skill shortages, a high tax wedge, a heavy regulatory system, and extensive presence of state-owned enterprises. Policies should focus on fiscal and structural reforms to rebuild fiscal buffers and increase productivity. Slovenia’s external position in 2018 is assessed as substantially stronger than suggested by fundamentals and desirable policies; however, the current account is expected to revert to its norm in the medium term. Continued structural reforms are key to ensure long-term prosperity while strengthening the economy’s resilience to shocks. Effective implementation of the recently enacted reforms to vocational training, apprenticeship, and adult education would help address skill shortages, support employment of younger and older people, and boost productivity growth.

Series:

Country Report No. 19/58

Subject:

Balance of payments Central Banks Economic indicators Gross domestic product Macroprudential policies and financial stability National accounts Social security Structural fiscal balance