Review of Slovenia's Economy from 26 October to 1 November

Ljubljana, 3 November - Inflation totalled 0.5 percent in October and is now 7.2 percent on a year to year basis. If economic policy remains unchanged, inflation growth will be reduced to 5.9 percent in 2003, but if economic policies are appropriately restrictive, annual inflation growth could be as low as 5.1 percent, the government Institute for Macroeconomic Analyses and Development (IMAD) suggested in its autumn forecast. In light of these estimates, the representatives of the ministries for finance, economy, environment, spatial planning and energy, the Bank of Slovenia, and the Institute for Macroeconomic Analyses and Development have agreed on how to reach an average five-percent annual level of inflation in 2003, also by means of a restrictive policy of controlled and regulated prices. The week was also marked by the news that Swiss bidder Novartis succeeded in acquiring 57.28 percent of Slovenian drug maker Lek, thus exceeding the 51 percent threshold set in its takeover offer.