May 23 (SeeNews) - Slovenia's economic outlook for 2023 is improving amid robust domestic demand and gross domestic product (GDP) growth in the first quarter of the year, the central bank said.
"The favourable GDP growth in the first quarter is also improving the outlook for economic growth this year. At the same time the strong activity on the domestic market is being reflected in the high inflation, particularly core inflation excluding energy and food," the Bank of Slovenia said in a statement last week.
Slovenia's GDP expanded by 0.6% in quarterly terms and 0.7% year-on-year in the first quarter of 2023, with quarterly growth being 0.5 percentage points higher than the euro area average, according to data from Slovenia's statistical office.
Economic growth continues to be mainly driven by domestic demand, which is being reflected in particular in services and construction. Net exports made a positive contribution to growth, mainly in connection with the realisation of past orders and the resulting sharp run-down of inventories, the central bank noted.
Slovenia's central bank is currently drawing up its new projections, which are scheduled for publication in mid-June.
Last week, the European Commission improved its economic growth forecast for Slovenia in 2023 to 1.2% from 1.0% predicted in February, as private consumption is projected to continue to increase, while consumption will be supported by employment growth and rising wages, with the saving rate expected to slightly increase toward the pre-pandemic level.