November 4 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it has raised its forecast for Slovenia's economic growth in 2021 to 6.0% from 5.0% projected in June.
Slovenia's gross domestic product (GDP) is forecast to expand by 6.0% in 2021, as domestic demand has continued recovering in the third quarter, with risks to the upside if the strong momentum is maintained, the EBRD said in its new Regional Economic Prospects report.
“Growth will moderate in 2022 towards 4.5%, as investment, including from EU funds and the healthcare spending bill, will accelerate, while private consumption will be supported by rising incomes and a tight labour market,” the report added.
The below EU-average vaccination rate could limit the recovery of consumption and affect business confidence, while supply constraints in global trade will slow down manufacturing and goods exports, the report noted.
Slovenia's GDP shrank by 4.2% 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 5.2% in 2021 before expanding 4.7% in 2022.