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Think-Tank Sees Signs of Recovery in Slovenia

Ljubljana, 29 March (STA) - Signs of economic recovery in Slovenia are abounding, but the picture is still mixed, an economic think-tank says in its monthly report.

Export demand is outpacing domestic demand and export expectations are approaching the long-term average, the EIPF Economic Institute says in the March edition of Economic Trends.

Household consumption recovered in December and January and investment trends remain positive even though government expenditure is shrinking.

Business sentiment remains stable in manufacturing and is improving in retail, but pessimism has returned to the service sector and construction is stagnating at a very low level.

The EIPF sees a mixed picture on the labour market, as unemployment rose in February, albeit at a slower pace.

On the other hand, it says constant complaints about the rigidity of the labour market are overblown, as labour costs dropped significantly after exploding in 2008.

Inflation expectations continue to grow, but disregarding seasonal fluctuations inflation remains stable.

The state of public finances is also improving, with revenue increaseing over the year before. Only proceeds from corporate tax have dropped.

Credit and deposit growth remains sluggish, the EIPF says.

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