Hot topics

Slovenia Business Week no. 21: IMAD Finds Good Progress in Development

The government's macroeconomic think-tank has found "good progress" in Slovenia's development in its annual development report

The government's macroeconomic think-tank has found "good progress" in Slovenia's development in its annual development report.

"There has been good progress in development in macroeconomic and social stability, while Slovenia is still lagging somewhat behind in terms of competitiveness," head of the Institute of Macroeconomic Analysis and Development (IMAD) Janez Sustersic told the press on Friday, 26 May.

In terms of welfare state indicators (unemployment, employment and poverty) and macroeconomic indicators (total general government debt, inflation) Slovenia ranks high among the EU member states, Sustersic said.

According to him, Slovenia can be proud of its achievements in these two fields. Meanwhile, Sustersic hopes the upcoming switch to the euro will make Slovenia more competitive.

Although Slovenia is bridging the development gap with the EU average, it is doing so too slowly given the goals it set itself in the Development Strategy, Sustersic added.

He believes that reforms will be needed to speed up economic growth and allow Slovenia to meet its development goals.

According to Sustersic, IMAD paid more attention to the development role of the state in this year's report, since international organisations have claimed that the role of the Slovenian state is not sufficiently development-minded.

The government has took big an ownership role in companies and the solution lies in privatisation, IMAD concludes in the document, adding that a big role for the state in the economy does not help competitiveness.

According to the report, there is room for improvement in the taxation of capital and environmental taxes, while the state spends a lot on welfare.

Moreover, the report finds that development in Slovenia was not balanced: economic development lagged behind social and environmental development in the 2000 to 2004 period.

The report also finds that incoming investment were outstripped by outgoing investment, which is unusual for a country like Slovenia. It also praises efforts to help Slovenian companies go global.

Slovenia has untapped potential in business services and lags behind the EU in financial services, especially banking, the report adds.

Source: Slovene Press Agency STA

Author: STA