Thomson Financial News - The (Slovenian) economy is growing fast and inflationary pressures are mounting, with the latest numbers exceeding 5 pct. Monetary policy evidently cannot cure this problem. On the other hand, fiscal policy in Slovenia is too lax, out of line with what would be required for macroeconomic stabilisation. Deregulation of the product and labour markets has not yet been completed. Wages are growing faster than productivity, in particular in the public sector. The risks of a boom-and-bust cycle are looming.
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