Weak Growth To Persist

We have revised down our Slovenian growth forecast for 2010 to 1.8% on the back of persisting weak domestic demand data. Local credit conditions in the country have remained heavily constricted, despite the stabilisation of global financial markets and the emergence from recession in the second quarter. As a result, we now have weaker expectation for domestic demand growth, with private consumption forecast to expand by only 0.5% and gross fixed capital formation to contract for a second consecutive year. We hold to our forecast for a 2.5% expansion in 2011.

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