OECD Economic Survey of Slovenia 2022 – Presentation

2022 OECD ECONOMIC SURVEY OF SLOVENIA @OECDeconomy

www.oecd.org/economy/slovenia-economic-snapshot

4 July 2022

The strong recovery is set to moderate

Note: Shaded area denotes projections.

Source: OECD Economic Outlook: Statistics and Projections database.

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Inflation pressures are increasing

Note: Core inflation excludes food, energy, tobacco, alcohol.

Source: OECD Main Economic Indicators database.

3

Fiscal imbalances remain elevated

Note: National accounts definition of gross public debt.

Source: OECD Economic Outlook: Statistics and Projections database.

4

The labour market is strong

Note: Data are seasonally adjusted.

Source: OECD Main Economic Indicators database; OECD Labour Statistics database; and OECD calculations.

5

Ageing-related spending pressures need to be addressed

Source: Adapted from OECD (2021), OECD Economic Outlook: Statistics and Projections (database), June; Guillemette, Y. and D. Turner (2018), "The Long View: Scenarios for the World Economy to 2060", OECD Economic Policy Paper No. 22., OECD Publishing, Paris; and European Commission (2021), "The 2021 Ageing Report Economic and Budgetary Projections for the 28 EU Member States (2019-2070)" Directorate-General for Economic and Financial Affairs.

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The effective retirement age is low

Source: Source: OECD Pension at a Glance database.

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Macro-policy recommendations • Use fiscal consolidation to manage demand pressures.

• Develop a medium-term fiscal consolidation plan to address the long-run challenges of ageing.

• Raise the minimum years of contributions and use lifetime incomes to determine pension benefits.

• Increase the statutory retirement age to 67 years, and link it thereafter to gains in life expectancy.

• Secure long-term care funding by strengthening health insurance, while guaranteeing equal access for all.

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REFORMS FOR STRONGER GROWTH

Better environmental outcomes are needed

Note: Right-panel: the greenhouse gas (GHG) emissions include those from the land use/land use change and forestry sector (LULUCF).

Source: OECD Green Growth database; OECD Environment database; OECD Population database; and OECD calculations.

10

Labour market dynamics are low

Note: Job separation rate refers to the difference between the hiring rate and the net employment change. Job finding rate refers to the share of employed in the latest 12 months in total employment.

Source: OECD Labour Force Statistics database; and OECD calculations.

11

The labour tax wedge remains high

Note: The tax wedge is the sum of personal income tax and employee plus employer social security contributions together with any payroll tax less cash transfers.

Source: OECD Taxing Wages database.

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Recommendations for stronger and more sustainable growth • Make the tax system more growth-friendly by reducing labour taxation and increasing consumption and property taxes.

• Simplify the VAT system by moving to a broader-based standard VAT rate.

• Use a rules-based system for public wage increases subject to budget constraints and with the flexibility to address shortages.

• Encourage wage-setting at the firm level and determine framework conditions at the sectoral level.

• Introduce and align carbon taxes in the non-ETS sectors and internal carbon prices in all budget and planning preparations.

13 • Phase out fossil fuel-based, including wood, boilers.

DIGITALISE THE ECONOMY

Relatively few have high speed broadband subscriptions

Source: OECD Broadband Portal database, https://www.oecd.org/sti/broadband/broadband-statistics.

15

Fixed broadband prices remain high

Note: For mobile broadband baskets: From May 2018, the 900 calls+ 10GB profile became available.

Source: OECD and Strategy Analytics, 2021.

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ICT investments are relatively low

Note: Investment in other fixed assets, i.e.: non-ICT equipment, machinery and building are not shown. OECD is an unweighted average of available countries.

Source: OECD National Accounts database.

17

Firms’ adoption of ICT tools lags behind

Note: Firms with 10 or more employees, excluding financial sector. ERP stands for enterprise resource planning, CRM for customer relationship management. Data on Cloud Computing refer to purchase of cloud computing services used over the Internet. OECD is an unweighted average of available countries based on the latest available year.

Source: OECD ICT Access and Usage by Businesses database, http://oe.cd/bus.

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Firms have growing problems with recruiting ICT specialists

Source: Eurostat.

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VET teachers make limited use of technology

Note: VET teachers are those who reported in TALIS that they were teaching practical and vocational skills in the survey year in upper secondary programmes (ISCED 3), regardless of the type of school where they teach. The reported average corresponds to the unweighted average for the six OECD member countries/regions in the sample.

Source: OECD (2021), Teachers and Leaders in Vocational Education and Training, OECD Reviews of Vocational Education and Training, OECD Publishing, Paris, https://doi.org/10.1787/59d4fbb1-en, using TALIS 2018 data.

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There are relatively few master and doctorate graduates in ICT

Source: OECD Education Statistics database.

21

Digital skills are lacking among older, poorer and less educated households

Note: Data by educational attainment and by gender refer to individuals aged 25-64.

Source: Eurostat.

22

Digital government is average

Note: Data are not available for Australia, Hungary, Mexico, Poland, Slovakia, Switzerland, Turkey and the United States.

Source: OECD Survey on Digital Government 1.0.

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Recommendations to accelerate the digital transformation

• Benchmark to foster competition and quality of networks.

• Make investment subsidies reflect actual deployment costs.

• Use input and output benchmarking in programme management • Move from opt-in to opt-out for the use of e-government services.

• Provide digital support for and training of VET teacher.

• Use scholarships to boost enrolment in higher ICT studies.

• Provide non-ICT graduates with more advanced ICT skills.

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For more information

www.oecd.org/economy/slovenia-economic-snapshot/ OECD Economics

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