Public Debt To Rise Further

We forecast the level of public sector debt in Slovenia to rise further in 2010, to 48.0% of GDP. A weak macroeconomic recovery will keep budget revenues weighed down, while the government's ongoing fiscal stimulus will simultaneously elevate expenditures. Beyond 2011, an expected regional and domestic demand recovery should lower the public sector borrowing requirement and as a result, we expect the debt load to fall from thereon, declining back to 40.8% of GDP by end-2014.

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