EU Commission upgrades Slovenia’s GDP growth forecast to 5.7%

Brussels – The European Commission projects that Slovenia’s economy will expand by 5.7% this year, a 0.8-point increase on its May forecast. The outlook for 2020 was slightly downgraded to 5%. The eurozone as a whole is expected to post growth rates of 4.8% and 4.5%, respectively.

Issuing its forecasts on Wednesday, the Commission said Slovenia’s recovery was buoyed by growing private spending, investments and exports, with merchandise exports already at pre-crisis levels.

In general the impact of the pandemic is still cushioned by significant government measures in support of jobs and corporate liquidity.

With the removal of restrictions and return of confidence, growth is forecast to remain positive in the second quarter and to accelerate in the third quarter, driven by the same factors as in the first quarter – consumption, investment and foreign demand.

Services exports are also projected to improve in the second half of the year with the gradual opening of the tourism sector. The implementation of the Recovery and Resilience Plan is also expected to strengthen private and public investment.

Inflation, which was negative in 2020, is projected to stand at 1.4% this year before rising to 1.7% in 2022.