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Slovenia Economic Snapshot

Economic Forecast Summary (December 2021)

Economic growth is projected to recover to about 5.9% in 2021 and 5.4% in 2022, and moderate to a still robust 3.2% in 2023. Domestic demand will be the main driver of growth. Higher real incomes will boost private consumption. Investment will increase on the back of increasing capacity constraints and larger inflows of EU funds. Headline inflation will rise, and reach 3% by 2023, reflecting high energy prices, supply side constraints and a tighter labour market.

Reform Priorities (April 2021)

Going for Growth 2021 - Slovenia

Several long-standing vulnerabilities risk slowing down the recovery. Lowering labour taxes should be a priority. Currently, low-skilled workers have few incentives to enter employment or increase work efforts as high-income taxes erode income gains. Another concern is the relatively high share of state-owned enterprises, present across all sectors, which hinder competition and reallocation of resources to most productive firms during the recovery.

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2021 Structural Reform Priorities

  • Tax system: Adjust the tax-benefit system to strengthen work incentives for low and high income earners
  • Labour market: Reform the wage setting process and improve targeting of employment and training assistance
  • Competition and regulation: Eliminate barriers to entry and competition
  • Education and skills: Improve students' performance and employment prospects
  • Labour market and fiscal sustainability: Reform pension regime in light of rapid ageing

 

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Economic Survey of Slovenia (July 2020)

Executive Summary

Presentation

Development Strategy to 2030