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Economist Predicts Weak Recovery Followed by Short-Term Dip

Ljubljana, 10 December (STA) - The Slovenian economy looks set to rebound next year, but the recovery will be weak initially and may be followed by a short-term dip, economist Velimir Bole said Thursday.

The economy stopped contracting in the third quarter and GDP actually grew by 1% over the previous quarter.

But Slovenia is unlikely to reach the pre-crisis GDP level before 2012, Bole said at a New Year's meeting of the bank Abanka.

Bole predicts GDP growth of 1.1% in 2010 and 3.6% in 2011, buoyed by strong growth in exports and imports. However, investment will continue to grow at a very slow pace.

According to Bole, considering how open and export-oriented the Slovenian economy is, the state can do very little to spur growth.

In a similar vein, employment is not expected to start growing again before 2011.

Bole works for the Economy Institute at the Ljubljana Law Faculty.

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