The Slovenia Times

Brussels downgrades Slovenia growth forecast


Despite the downgrade, the growth figures projected for Slovenia are still substantially above the average for the eurozone and the EU, which are projected to growth at 1.3% and 1.5% this year and at 1.6% and 1.7%, respectively, in 2020.

The Commission's report finds that Slovenia's economic growth in recent years was "broad-based, driven by both strong investment dynamics and consumer spending, as well as net exports".

With strong employment and continued wage growth, the Commission expects consumption to strengthen this year and next, along with continued growth in public investment, driven also by EU funding.

Even though business investment activity is also expected to remain buoyant, net exports' contribution to growth is expected to turn negative.

Slovenia's inflation rate is projected to reach 1.9% this year before increasing to 2.1%, which is above the euro average projection of 1.4% and 1.5%.

The Commission releases two comprehensive forecasts a year, one in spring and one in autumn, plus two interim ones, in winter and summer, which do not include public finance projections.

By the end of the month the Commission is also expected to release its winter economic package with its opinion on Slovenia's updated budget plan.

Asked whether he was satisfied with Slovenia's explanations about the country's updated budget plans, European Commissioner for Economic and Financial Affairs, Pierre Moscovici, said that the plans were being examined and an assessment would be made in due time.


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