EU Commission maintains 2.7% growth forecast for Slovenia – export will moderate

The European Commission has kept Slovenia’s economic forecast unchanged at 2.7% for this year and the next. Compared to last year’s autumn forecast, the GDP forecast for last year downgraded by 0.1 percentage point to 2.5 percent.

“Net exports are expected to weigh on growth over the forecast horizon, … while import growth should remain strong due to robust domestic demand growth”, the EC forecasts.

The European Commission (EC) estimated that Slovenia’s gross domestic product (GDP) growth to have reached 2.5 percent in 2019, compared to 4.1 percent in 2018. The growth was driven mainly by external factors, economic sentiment in 2019 continued to slide and was only slightly above its long-term average in January 2020, the EC summarised.

EC expects the employment rate in Slovenia to remain high and wage growth to continue.

Headline inflation reached an average rate of 1.7% last year, down from 1.9% in the year before. Wage increases are expected to drive up inflation through the price of services; overall, consumer price inflation is forecast at 1.9% in this year and 2.0% in the next.

In November last year, the EC – which publishes a comprehensive forecast in the spring and autumn, while the winter and summer forecasts do not include data on public finances – lowered a three-year period forecast for Slovenia, which nevertheless remains well above the euro area average.

 

Source: STA, vecer.com

Photo: Pixabay

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