The Bank of Slovenia predicts a deep GDP contraction in Slovenia

According to the Bank of Slovenia, the price Slovenian economy is going to pay due to the coronavirus pandemic is likely to exceed the price paid in the last global financial crisis. The 2020 GDP contraction is expected to be between 6 and 16 percent.

In its analysis of the impact of the coronavirus, the Bank of Slovenia assumed three possible scenarios of further developments, on the basis of which it calculated the potential impact on the Slovenian economy. Upon the expected deep GDP contraction, the Bank also pointed out the huge impact on the labour market, inflation, state indebtedness and the banking system.

In all three scenarios, the central bank estimated that the impact of the coronavirus on the Slovenian economy is going be huge, depending mainly on the duration of the measures to stop the spread of the virus and the speed of recovery after the measures are abolished.

 

Source: STA

Photo: Pixabay

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