OECD downgrades Slovenia's 2023 GDP growth f'cast to 1.4%

"GDP growth is projected to slow to 1.4% in 2023, reflecting weaker domestic and external demand, but will pick up to 1.8% in 2024 and 2.7% in 2025, as disinflation continues to support real incomes and global economic conditions improve," OECD said in the November edition of its Global Economic Outlook 2023 report.

Slovenia GDP grew by 5.0% in 2022.

Fiscal policy will remain expansionary in 2023, reflecting government measures to mitigate high energy prices and recover from the devastating floods of the summer, before tightening in 2024 and 2025, the OECD noted.

Structural reforms are needed to preserve fiscal sustainability and raise potential growth, including measures to improve the labour force participation of older workers and reduce labour shortages, as well as a lower labour tax burden, the organisation added.

The OECD Economic Outlook is the OECD’s twice-yearly analysis of the major global economic trends and prospects for the next two years.