The labour market is tight
Source: Statistics Slovenia; and OECD calculations.
Inflation has declined and is close to that in the Euro area
Note: Harmonised Index of Consumer Price inflation for Slovenia and the Euro area, preliminary estimates for May 2024. OECD weighted average excluding Türkiye.
Source: OECD Price Statistics database.
Growth is projected to pick up
Note:
Source: OECD Economic Outlook 115 database.
Continuing fiscal reforms
Further reforms, including of pensions, are needed to ensure fiscal sustainability
Note: The EU Fiscal Compact is contained in the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (2012) and reinforces the Stability and Growth Pact. It contains four main elements (i) a mandatory balanced budget rule, (ii) strengthening of the excessive deficit procedure, (iii) benchmark for government debt reduction, and (iv) public debt issuance plans. The assumed EU Fiscal compact scenario is consistent with the balanced budget rule of the Fiscal compact, namely, a maximum structural deficit of 0.5% of GDP (or at most 1% if the debt-to-GDP ratio is below 60% and long-term risks to fiscal sustainability are low). The fiscal consolidation and structural reforms scenario adds to the maximum structural deficit of 0.5% of GDP additional pro-growth reforms discussed in the Survey: increasing competition, lowering pension costs, and making the tax system more growth-friendly (switching from labour taxation towards recurrent immovable property taxation).
Source: Adapted from OECD Economic Outlook database; Guillemette, Y. and D. Turner (2018); and European Commission (2024), "2024 Ageing Report”.
Phasing out non-targeted energy support will help restore fiscal buffers
Note: Support measures are considered targeted if their main beneficiaries are not "all households" or "all firms" or "all energy users". The figure includes both price and income measures. Fiscal costs do not account for possible accompanying revenue -increasing measures, such as windfall profit taxes on energy companies.
Source: OECD Energy Support Measures Tracker.
Pension reforms must curb rising fiscal pressures
Note: The underlying assumptions and projection methodologies are agreed with EU countries and include: (i) the EUROPOP2023 population projections by Eurostat; (ii) macroeconomic assumptions based on common methodologies (changes in labour productivity, both in total factor productivity and capital deepening) and in the labour force (participation, employment, unemployment rates), interest rates and inflation; and (iii) budgetary projections of public spending on pensions (from agreed national models), health care, long-term care and education (by the European Commission using common models).
Source: European Commission Ageing Report (2024).
Further improving gender equality
Female labour market participation is high but could be improved by reducing disincentives for second earners
Note: The figure refers to the share of gross earnings in a new job that pays the average wage when increasing hours worked from 50% to 100% of full-time employment, for a second earner with two children and a partner working full-time in a job that pays the average wage; effective tax rates include social assistance, temporary in-work benefits, and housing benefits; they do not include childcare benefits. 2022 for Israel.
Source: OECD Benefits, Taxes and Wages database.
Care responsibilities could be more balanced
Note: Maternity leave refers to the number of weeks of job-protected leave available for mothers just before and after childbirth. For countries where there is no separate legislation for maternity leave, the weeks of parental leave reserved for the exclusive use of mothers around childbirth are reported. Parental leave with job protection refers to the number of weeks after maternity leave which a woman can take as parental leave with her job protected, disregarding payment conditions. Total duration of paid maternity and parental leave refers to the total number of weeks which a women can be on paid leave after the birth of a child combining maternity, parental and home care leave. Paid father-specific leave refers to the number of paid weeks reserved for the exclusive use of fathers, including entitlements to paid paternity leave, ‘father quotas’ or periods of paid parental leave that can be used only by the father and cannot be transferred to the mother, and any weeks of paid shareable leave that must be taken by the father for the family to qualify for 'bonus' weeks of parental leave. Source: OECD Family database.
The gender wage gap
is relatively small though it can be reduced further
Note: The gender wage gap is defined as the difference between male and female median wages divided by male median wages.
Source: OECD Gender Statistics database.
Addressing housing market challenges
Boosting construction would expand housing options
Note: Data refer to the European Union, including 27 countries. Unweighted averages for OECD and European Union aggregates.
Source: OECD Economic Outlook: Statistics and Projections database; Eurostat National Accounts database; OECD calculations.
Note: Data refer to lending margins of monetary financial institutions.
Source: European Central Bank .
Housing governance can be improved by establishing regional spatial plans and one-stop shops for building permits
Source: OECD Housing Governance Indicators Dashboard, https://www.oecd.org/housing/policy-toolkit/data- dashboard/housing- governance.
The social housing stock could be expanded
Source: OECD Affordable Housing Database.
Decarbonising the economy
Emissions reductions need to accelerate in energy and transport
Note: Greenhouse gas emissions include those from the land use/land use change and forestry sector.
Source: Eurostat; European Environment Agency; OECD Environment database; OECD Population database; and OECD calculations.
Carbon prices should be more harmonised across sectors
Source: OECD (2022), Pricing Greenhouse Gas Emissions: Turning Climate Targets into Climate Action, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris.
Greater use of public transportation would help reduce emissions
Note: Greenhouse gas emissions from international aviation and navigation are excluded.
Source: Eurostat; European Environment Agency; and OECD calculations.
Energy efficiency certificates and incentivising renovation would accelerate the decarbonisation of homes
Note: Dotted line refers to projections.
Source: International Energy Agency Energy Efficiency Indicators, 2023.
Land use regulations need to reduce exposure to flood risks
Note: The exposure to river flooding is calculated assuming a 100-year return period, i.e. that an area has a 1% chance of being hit by a flood in a given year.
Source: OECD Environment Statistics database.
Main messages
Fiscal consolidation is needed to rebuild fiscal space, support disinflation and address emerging pressures from ageing-related costs, notably pensions.
Female labour market participation is high, but the remaining gender wage gap could be reduced further through reforms to the tax and benefit system and policies addressing gender stereotypes.
Addressing housing shortages requires streamlining spatial planning and permitting, improving rental regulations, expanding access to mortgage finance, and promoting social and affordable housing.
A greater harmonisation of carbon prices, notably the removal of reduced tax rates for fossil fuels, is needed to reach emissions targets. Promoting public transport use can be achieved by decreasing the commuting allowance and ensuring competitive fares.
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Disclaimers:
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.