wiiw Current Analyses and Forecasts
Slovenia: Returning recession
in: Fasting or Feasting? Europe - Old and New - at the Crossroads
wiiw Current Analyses and Forecasts No. 10, July 2012 , pp. 90-93
Given the economic deterioration in Slovenia’s most important EU trading partners and the need of fiscal consolidation Slovenia will remain in recession in 2012 and rebound only slowly thereafter. The corporate and household sectors will continue to deleverage and asset quality of the ailing banking sector has to be strengthened. Returning recession will exert upward pressure on the unemployment rate not only in 2012 but probably in 2013 as well. Consequently household consumption growth will remain subdued.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Slovenia, Visegrad countries