ECONOMIC OUTLOOK – European Commission Raises Slovenia’s '08 GDP Growth Fcast to 4.4%, Cuts '09 Fcast to 2.9%

In the spring the Commission projected Slovenia's economic growth at 4.2% in 2008 and at 3.8% in 2009. Slovenia’s economy grew by a real 6.8% last year.

“Economic growth remained strong in 2008, albeit well below the exceptional performance recorded in 2007,” the Commission said in a report with economic forecasts for 2008, 2009 and 2010.

“Real GDP increased at an annual rate of 5.5% in the first half of the year, but with leading indicators pointing to some moderation for the remaining quarters, growth of 4.4% is projected for the year as a whole,” the EU executive added.

The Commission said growth is projected to slow to 2.9% in 2009, driven by a broad-based deceleration in investment activity. In 2010, some recovery is expected, driven by a pick-up in investment growth, especially in railways infrastructure. Gross domestic product (GDP) growth is projected at 3.7% in 2010.

Details of the European Commission's projections about Slovenia's economic development follow: