Sound macro-policies but reforms still needed
Overview:
Slovenia has a very high per capita GDP and has enjoyed strong macroeconomic policy implementation during the transition. This has been reflected in Slovenia joining the EU in 2004 and the euro zone in 2007. Economic growth had been relatively modest, however, until the last few years reflecting patchy implementation of structural reforms. Faster economic growth recorded more recently has proved short-lived and Slovenia is now being heavily affected by the global economic downturn if not directly by the financial crisis per se. Its inclusion in the euro zone helps financial market and macro-economic stability but also means that it is even more important to retain competitiveness as the currencies of some of its peers in the region have weakened sharply against the Euro.