Slovenia ends 2017 with first surplus in over 20 years

LJUBLJANA: Slovenia ended 2017 with a small budget surplus for the first time in 24 years, the statistics office said on Friday.

The export-oriented country, which narrowly avoided an international bailout for its banks in 2013, returned to growth just one year later.

The surplus, which amounted to 13 million euros ($16 million), compares to a deficit of 781 million euros in 2016.

The last time Slovenia reported a surplus was under a different accounting system in 1993.

"This is the consequence of high economic growth. Revenues increased by 6.5 percent while spending was up by 1.9 percent," the statistics office said.

It said public debt increased in nominal terms to 31.9 billion euros from 31.8 billion a year before, while it fell as a percentage of GDP to 73.6 percent from 78.6 percent in 2016.

"This (surplus) is a big success and a proof that we have been running a suitable public finance policy in the past years," Finance Minister Mateja Vranicar Erman said in a statement.

But she pointed out the public finance consolidation process has not finished yet: "We have to continue to act responsible, particularly to younger generations.... The state is still not prepared enough for the next economic crisis."

The government has said it plans a budget surplus of about 0.4 percent of GDP this year while public debt is due to fall to below 70 percent of GDP.

The outgoing centre-left government expects GDP to increase by 5.1 percent this year versus 5 percent in 2017 boosted by exports which include cars, car parts, pharmaceuticals and household appliances.

Slovenia is due to hold a parliamentary election on May 27 or June 3. The exact date will be determined by President Borut Pahor next month.