LJUBLJANA (Slovenia), February 13 (SeeNews) – The European Commission said on Thursday it affirmed its November forecast for Slovenia's economic growth for 2020 and 2021 at 2.7% annually.
“With the employment rate expected to remain high and wage growth expected to continue, private consumption is set to continue growing in 2020 and 2021,” the Commission said in its Winter 2020 Economic Forecast report.
In 2019, Slovenia’s economic growth is estimated to have reached 2.5%, down from 4.1% in 2018, driven by domestic demand, the Commission noted. The unemployment rate decreased to 4.6% in 2019 from 5.1% in 2018, it added.
Investment growth is expected to continue this year, although at slightly lower rate than in 2019 as economic confidence is lower, the Commission noted, adding that net exports are expected to weigh on growth over the forecast horizon, as export demand growth is expected to be lower than in previous years while import growth should remain strong due to robust domestic demand growth.
Consumer price inflation is forecast at 1.9% in 2020 and 2.0% in 2021, compared to an estimated 1.7% in 2019. In 2020 and 2021, wage increases are expected to drive up inflation through the price of services.
Economic growth in the euro area is expected at 1.2% in 2020 and 2021, while in the EU it is estimated at 1.4% for both this year and next, the Commission said, adding that the figures are the same as in its November forecast.