By Judith Ugwumadu | 19 February 2015
Slovenia has been urged to improve tax collection and address the growth of an ageing population, as part of measures to achieve fiscal balance and pay down debt.
Following an Article IV Consultation with Slovenia, the International Monetary Fund said the country was recovering from a deep crisis and praised government efforts to repair the banking system, facilitate corporate debt restructuring, and consolidate the public finances. Economic growth was estimated to have reached 2.6% in 2014, due to strong exports and European Union funded investments.
However, economic growth in 2015 and 2015 are projected to be around 1.9% and 1.7%, respectively, ‘with potential growth well below pre-crisis levels’, the IMF said.
‘Risks are tilted to the downside, and include those of insufficient reform implementation and weaker-than-expected external demand.
‘Continued comprehensive actions are needed to restore the health of the financial and corporate sectors, ensure fiscal and debt sustainability, and foster sustainable long-term growth.’
To keep Slovenia’s public finances in check, the IMF recommended that the government looks at tax improvements, including updating the property tax system, reforms pensions to address looming demographic pressures and makes efforts to increase efficiency in health, education and the public administration.
