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Slovenia Business Week no. 15: Think-Tank: Slovenia Is Advanced Economy Thanks to Euro

The International Monetary Fund (IMF) placed Slovenia among advanced economies in its 2006 economic report mainly because all countries of the eurozone belong to the group, Maja Bednas of the Institute for Macroeconomic Analysis and Development (IMAD) said

The International Monetary Fund (IMF) placed Slovenia among advanced economies in its 2006 economic report mainly because all countries of the eurozone belong to the group, Maja Bednas of the Institute for Macroeconomic Analysis and Development (IMAD), the government's think-tank, said on Thursday, 12 April.

Bednas, IMAD deputy director, added that Slovenia's development level in terms of GDP per capita did not play such an important role in the country being labelled an advanced economy. The country's GDP has been increasing and now amounts to over 82% of the European average, she said.

According to her, other EU newcomers would also make it among the world's most developed countries if they managed to adopt the euro, despite being much less developed according to other indicators.

"However, this does not diminish the importance of the placement. Especially in the sense that we will now be compared mainly to developed states, which brings greater challenges and responsibilities," she said.

Development Minister Ziga Turk meanwhile said that the "results of recent development were confirmed by figures...I hope that this will soon translate into wages and that we will create a dynamic environment in which low-paid jobs will make way for better-paid ones".

The IMF released its world economic outlook on Wednesday, 11 April, forecasting that Slovenia's economic growth will slow down to 4.5% in 2007 and 4% in 2008, from 5.2% in 2006.

The IMF also projected the country's unemployment rate would stay level at 6.4% both in 2007 and 2008. Likewise, inflation is to stay put at 2.7% this year and edge down to 2.4% in 2008.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency