Republic of Slovenia: Selected Issues
IMF Staff Country Reports, May 14, 2024
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- Republic of Slovenia: Selected Issues
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Bibliographic details
- Published: May 14, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400275043.002
Executive summary
- Slovenia’s ageing population constrains the contribution of labor to gross domestic product.
- Sustained increases in income and living standards can be achieved only through:
- investment in physical and human capital, and
- enhancing productivity, historically the key growth driver.
- The paper summarizes historical trends in growth and productivity in Slovenia and examines the country’s strengths and weaknesses in terms of key factors affecting productivity identified in the literature.
Analysis and findings
- Demographics:
- An ageing population limits the scope for future labor contributions to growth.
- Apart from further improvements to labor quality, labor quantity is unlikely to provide significant future growth impetus.
- Investment:
- Private investment has been low over the past decade, constraining capital accumulation and productivity-enhancing investment.
- Productivity:
- Enhancing total factor productivity is central to reviving sustained growth.
- The paper assesses factors affecting productivity based on literature-identified determinants and places emphasis on labor and product market conditions.
Policy recommendations
- Reinvigorate private investment to raise capital accumulation and support technology adoption and firm-level upgrading.
- Pursue labor market reforms that enhance labor quality and labor market functioning to offset demographic constraints.
- Implement product market reforms to boost competition and efficiency, thereby supporting total factor productivity growth.
- Prioritize policies that raise both physical and human capital investment as complements to productivity-enhancing reforms.
Publication note
- Publication date: May 14, 2024
Source: Republic of Slovenia: Selected Issues — https://www.imf.org/en/publications/cr/issues/2024/05/13/republic-of-slovenia-selected-issues-548958
Content in this bundle
- Republic of Slovenia: Selected Issues; IMF Country Report No. 24/121; April 10, 2024