November 11 (SeeNews) - The European Commission has lifted its economic growth forecast for Slovenia in 2021 to 6.4% from 5.7% predicted in July, it said on Thursday.
"Slovenia’s economy expanded rapidly in the first half of 2021 compared to the same period in 2020. The economy is expected to return to its 2019 level already in the third quarter of 2021 and to continue growing at strong pace in 2022-23, driven by consumption and investment," the Commission said in its Autumn 2021 Economic Forecast report.
The Commission sees Slovenia's gross domestic product (GDP) rising strongly also in 2022 and 2023, by 4.2% and 3.5% respectively, backed by a solid growth in private consumption.
"However, Slovenia remains a country with a relatively low vaccination rate and currently registers a high incidence of new COVID-19 cases. Many services are accessible only to the tested, vaccinated or recovered customers. Additionally, the global supply chain problems are affecting the Slovenian economy. Price increases and availability of materials appear to be the factors already limiting construction output," the EU's executive body said.
Slovenia's consumer price inflation is seen at 1.7% in 2021, while in 2022 it is expected to reach 2.1%. Regarding employment, a fall of 0.6% in 2020 is expected to be followed by 1.1% growth in 2021 and 1.3% growth in 2022.
The Commission expects economic growth in the EU at 5.0% in 2021 and 4.3% next year.