LJUBLJANA (Slovenia), June 29 (SeeNews) - Slovenia's gross domestic product (GDP) is expected to increase by 5.0% in 2021, the European Bank for Reconstruction and Development (EBRD) said on Tuesday, upgrading its September forecast.
The EBRD projected a 3.5% increase of Slovenia's GDP in 2021 in the previous edition of its Regional Economic Prospects report.
"The vaccination rollout and gradual phase-out of restrictions will lead to a partial recovery in consumption and services, while exports of goods and investments should further support growth," the EBRD said in the latest edition of its Regional Economic Prospects report.
The bank expects Slovenia's economic growth to slow to 4.0% in 2022.
"Risks are on the downside, particularly in the short term, as new waves of infections could limit the recovery of tourism and other services, while supply constraints in global trade could affect manufacturing and goods exports," the EBRD said.
Slovenia's GDP shrank by an annual 5.5% in 2020.
The GDP of the EBRD's region of Central Europe and the Baltic States, which comprises Croatia, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia, is seen rising 4.8% in 2021 before expanding 4.6% in 2022.