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IMAD Expects Slower Growth in Second Half of the Year

Ljubljana, 10 September (STA) - The Institute of Macroeconomic Analysis and Development (IMAD) expects economic growth in Slovenia as well in the entire eurozone to cool down again by the end of the year. The government's top economic think-tank says in a report published on Friday that several important indicators show no major change for the better.

IMAD says in its latest Economic Mirror report that despite the recent unexpectedly high growth, "a further deterioration of financial conditions in the second quarter and announced public finance saving indicate that growth at this level will not be sustained in the eurozone in the second half of the year".

Increased export demand and a change in stocks contributed to 2.2% second quarter growth in Slovenia. However domestic demand remained modest, while the minor growth in this segment is almost entirely the result of a change in stocks.

No turn for the better was recorded on the job market, IMAD added, reporting a stagnation in the number of actively employed since January and an increase in the number of unemployed to 99,000.

Home banks approved EUR 866.5m worth of loans in the first seven months, which is around 20% above the figure from the same period last year. An increase in borrowing was only recorded for households.

Public deficit reached EUR 1.4bn in the first six months, with revenue down 0.6% and expenditure up 2.7%.

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