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torek, 22 junija, 2021

Playing with the country is at the moment not appropriate

This year’s decline in gross domestic product (BDP), as a result of a sharp reduction in economic activity in the second quarter, will be deep yet still smaller than what was anticipated in the summer.

 

With the Institute of Macroeconomic Analysis and Development (IMAD), they forecast a 6.7 % reduction in GDP for the Autumn 2020. The outlook is improving both in Slovenia and at the level of the European Union (EU), moreover the confidence indicators are improving as well. This is largely due to the agreement at EU level on a financial package for the recovery of the European economy. It is known that Prime Minister Janez Janša and his colleagues achieved incredible success for Slovenia in negotiations. Our country will be able to draw an astonishing 10.5 billion euros in the next few years. At the same time, the Slovenian economy stays nourished. We can be reassured about our financial situation since we are in safe hands.

However, both EU and Slovenia, which is not an isolated island in this part, are still accompanied by great uncertainty related to the epidemiological situation. This is high, possibly uncontrolled spread of the new coronavirus and thus the possibility of a larger closure of certain activities could also lead to a deeper fall in GDP. Consequently, this would mean a slower and longer recovery period after the epidemic.

In the latter, however, we can easily recognise the efforts of those opposition leaders and their leading members who are working hard to make the spread of the virus as uncontrolled as possible. This would suit them very well, as they could then yell how the current government cannot control the epidemic. Hand on heart, they are yelling right now and run around without protective face masks. Above all, they encourage those suckers who believe they are very important to someone because they do not follow the measures.

The stricter economic situations are also affecting the labour market. In recent months, the government has managed to stabilise this with some effective measures. But perhaps this is also the reason why some crises due to the epidemic have not been felt on their skin?

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