The data confirm that the government has succeeded in turning around Slovenia's economy, the prime minister's office said in a statement on Friday.

"The figures have surpassed even the most optimistic forecasts on Slovenia's economic activity," the statement said.

The prime minister added that, in spite of the added optimism, the government was committed to pressing ahead with reforms in order "to enable stable economic growth in the mid-term that will bring tangible results for citizens".

Economy Minister Metod Dragonja said the figures clearly showed a "precious turnaround" and proved that the reform course has been correct.

Slovenia needs to continue down this path while adopting additional measures to accelerate growth, he said.

Prior to the final quarter of 2013, Slovenia experienced eight consecutive quarters of contraction on an annual level.

For the whole of last year, Slovenia's economy contracted by 1.1%. This is significantly better than forecast by the Institute for Macroeconomic Analysis and Development, the government's economic think-tank, which had predicted a 2.4% contraction in its autumn forecast.

The IMAD said the news made for a "favourable starting point" for this year's trends and would affect its spring forecast due in March.

Moreover, IMAd director Boštjan Vasle stressed the importance of figures on domestic spending, saying they were "above expectations".