IMF Annual Report About Slovenia

New York, 29 September

Before Friday’s meeting of finance ministers and governors of central banks of IMF and World Bank member states in Washington, The International Monetary Fund (IMF) published the World Economic Outlook, the most recent report on world economic trends.

In referring to Slovenia, the report stated slightly out of date that it is well positioned for joining the ERM II exchange rate mechanism despite having a substantially higher inflation rate than the European average. Slovenia, Lithuania and Estonia have been members of ERM II since June of this year, which is a precondition for entry into the European economic and monetary union, i.e. adopting the Euro.

The IMF forecast 3.9% economic growth for Slovenia this year, with 4.1% growth for 2005. Inflation was at 5.6% last year, this year according to the IMF forecast it will drop to 3.7%, and 3.2% in 2005. While the balance of payments was still positive in 2003, this year a deficit of 0.6% is expected, and a 1.4% deficit in 2005. In this year’s report Slovenia was ranked in the category of countries of “Emerging Europe”, which includes the new EU member states and countries of south-eastern Europe. Economic growth in this group is forecast to be 5.5% this year, dropping to 4.8% in 2005. Inflation will be around 7.1% this year, in 2005 around 5.9%. The balance of payments deficit will be 4.3% this year, and 4.1% in 2005.

IMF Annual Report About Slovenia

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