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International Monetary Fund
This 2002 Article IV Consultation highlights that the economic growth of Slovenia slowed in 2001 from about 4.5 percent to about 3 percent as domestic demand fell sharply and external demand weakened. Competitiveness remained strong and the current account deficit narrowed to about ½ percentage point of GDP. Real export growth decelerated from 12.7 percent in 2000 to 7.9 percent in the first three quarters of 2001. The planned reduction in the budget deficit in 2001 did not materialize because of expenditure overruns.
International Monetary Fund
The Republic of Slovenia, being the most successful transition economy in Central and Eastern Europe, has achieved significant economic convergence with the European Union, and has built up an impressive record of sustained, broad-based growth, reflecting strong competitiveness and investment. However, Executive Directors emphasized the need to maintain strong monetary and fiscal policies, and accelerate structural reforms. They commended the comprehensive action plan prepared by the authorities to strengthen prudential standards, improve liquidity management, and deepen the money market.
International Monetary Fund
Slovenia is among the most successful transition economies of central and eastern Europe. The authorities have consistently maintained conservative macroeconomic policies, which together with the relatively favorable starting point, allowed them the luxury of a gradual pace of reform. This approach to economic policy has delivered macroeconomic stability while maintaining social consensus and political continuity; at the same time, however, it has delayed the restructuring in certain sectors. Developments in 1999 have shaped by changes in the external environment and temporary domestic factors.
International Monetary Fund
This Selected Issues paper examines the progress of Slovenia by focusing on four interrelated topics that are critically important to the evolution of the transition process and provides insights into the work that lies ahead. The paper concludes that the voucher-based privatization process has failed to truly transform the ownership structure of socially owned enterprises. The paper also investigates the inflation process in Slovenia through an empirical examination of some commonly used determinants of inflation in transition economies.