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Slovenia Business Week no. 02/2005: Dun&Bradstreet Expects 3.9% Growth in 2006

In its report for January, D&B maintains Slovenia's risk rating at DB2c, the highest in the Eastern European region

International rating firm Dun&Bradstreet (D&B) has said it expects Slovenia's economic growth in 2006 to stand at 3.9 percent, which is 0.1 percentage points higher than in 2005.

In its report for January, D&B maintains Slovenia's risk rating at DB2c, the highest in the Eastern European region. Moreover, the latest risk report continues to bear a mark indicating that Slovenia's rating could be upgraded in the coming months.

Based on the 2005 economic forecasts and factoring in the strong private consumption which it says will continue to be the largest component of growth, D&B says that economic growth is expected to remain at just under 4 percent next year.

The report also says inflation in 2006 should be 2.7 percent, or 0.3 percentage points lower than in 2005, while unemployment should fall by 0.3 percentage points to 10.2 percent.

The altered inflation target is based on the presumption that "productivity growth will continue to outstrip wage growth".

It says structural constraints should prevent unemployment from falling to below 10 percent in 2006.

The report concludes that Slovenia continues to lead the Central and Eastern European economies in terms of per-capita GDP.

Source: Slovene Press Agency STA

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