Growth was driven by exports and a very high trade surplus as imports declined by 8.3% while exports were down only 0.7%. Foreign trade contributed 6.7 percentage points to the headline GDP figure.

Domestic consumption meanwhile contracted by 5.4%. Final consumption expenditure remained at the same level, while fixed capital formation declined by 20.1%, predominantly due to a decrease in inventories.

Gross fixed capital formation increased by 9.3%, mostly due to an increase in investment into buildings and structures. Household consumption expenditure went down by 1.1%, which occurred for the first time after two years of consecutive growth.

Total employment was 1,093,200 persons, up by 1.2% compared to the same quarter of 2022. The largest number of new jobs was generated in construction.

The central bank and the government's macroeconomic forecaster IMAD noted that the outlook for the rest of the year remains uncertain, not least due to the recent floods.

The Bank of Slovenia expects export orders to continue declining. Coupled with tighter financing conditions, this will weigh down on industry.

What is more, the flood and its aftermath are likely to have a negative impact on certain segments of the economy.

IMAD likewise said the floods will affect economic activity, whereby other uncertainties remain.

"These uncertainties are connected with inflationary trends and the impact of tighter monetary policy on economic activity. Uncertainty connected to the impact of energy prices on the output of energy intensive industries remains elevated as well," IMAD director Alenka Kajzer was quoted as saying.