Raiffeisen Forecasts Slovenian Growth at 5%, Inflation at 3.5%
Analysts at banking group Raiffeisen Bank expect Slovenia's economy to expand by 5% and inflation to stand at 3.5% this year, according to its Strategy Slovenia 2008 publication.
The 5% growth figure exceeds expectations of the central Slovenian economic think tank, the Institute for Macroeconomic Analysis and Development, which has forecast growth of 4.6% for this year.
Raiffeisen analysts expect growth to be fuelled by expanding investment in infrastructure, foremost motorways, the report says.
Meanwhile, the bank also expects a cooling of the inflation rate (currently above 6%) to 3.5% for the year. Prices of domestically produced food are expected to stabilise over the next two years, the report adds.
According to the analysts, there could be a slowing in the pace of privatisation in Slovenia as other issues, such as the EU presidency and the general election, are given priority among political circles.
Delays in privatisation could dampen the mood on the Ljubljana Stock Exchange, Raiffeisen adds.
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