September 28 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it expects Slovenia's gross domestic product (GDP) to increase by 6.0% in 2022, revising upwards its 3.5% growth projection made in May.
"GDP is forecast to grow by 6% in 2022, with risks tilted to the downside, especially if households significantly cut down spending in the remainder of the year," the EBRD said in its latest Regional Economic Prospects report.
In 2023, growth is expected to slow down significantly to 1.8%, due to a drop in domestic demand and the weaker Eurozone economy, which will hold back Slovenian exports, the EBRD said.
Slovenia's GDP grew by 8.9% year-on-year in the first half of 2022, the fastest growth rate across the EU, driven by resilient domestic demand and an inventory build-up, the EBRD noted. "Exports were also resilient, especially in the second quarter, but the domestic economy increased demand for imports, leading to a negative contribution of net exports," the bank added.
In 2021, Slovenia's economy rebounded strongly by 8.2%, spurred by generous government spending which supported the recovery of domestic demand.