November 23 (SeeNews) - Erste Group expects Slovenia's economic growth to slow down to about 1% in 2023 from 5.4% this year, as private consumption will lose momentum, it said.
"With robust performance in the first half of 2022 opposing weaker output in the third quarter, we keep our current full-year 2022 forecast at 5.4% year-on-year, while 2023 growth is expected around 1% mark, reflecting a high level of uncertainty," Erste Group said in a report last week.
Domestic demand should remain supportive, but will mainly come from steady investment activity, while private consumption would further lose momentum amid persistent inflation and a strong base effect, Erste Group said.
Slovenia's economic output rose by a real 3.4% year-on-year in the third quarter of 2022, the statistical office said earlier this month.
The detailed structure revealed surprising developments on the domestic demand side, where private consumption support strongly deflated as it only increased by 2.6% on the year versus 16.1% in the first half of 2022, Erste Group said.
In September, the European Bank for Reconstruction and Development (EBRD) said it expects Slovenia's gross domestic product (GDP) to increase by 6.0% in 2022, revising upwards its 3.5% growth projection made in May.