February 13 (SeeNews) - The European Commission has improved its economic growth forecast for Slovenia in 2023 to 1.0% from 0.8% predicted in November, it said on Monday.
Slovenia's economy is expected to expand by 2.0% in 2024, the Commission said in its Winter 2023 Economic Forecast report.
"Continuing global economic uncertainty and the tightening of financial conditions are expected to limit growth at the beginning of 2023. However, as employment remains high and wage growth is set to be robust, growth is projected to improve as from the second half of 2023," the Commission said.
While private consumption is expected to grow only modestly after its rapid increase in 2022, investment is forecast to continue growing, partly sustained by public investments supported by the Recovery and Resilience Fund (RRF), the EC noted.
"With global energy prices easing and growth remaining weak, headline inflation is projected to decrease to 6.1% in 2023. In 2024, inflation is forecast to fall further to 3.5% on the back of assumed economic growth and moderation of energy prices. Core inflation is expected to remain elevated on account of more generalised price and wage growth," the EU's executive body said.
Slovenia's economy is estimated to have expanded by 5.1% last year after growing by 8.1% in 2021.