LJUBLJANA (Slovenia), May 17 (SeeNews) - Erste Group expects Slovenia's economic growth to decelerate to 3.2% in 2022 due to the increasing price pressures and war in Ukraine, it said.
Slovenia's gross domestic product (GDP) remained robust at 9.8% year-on-year in the first quarter, exceeding the expectations, but risks remain amid uncertainty over the further development of the conflict in Ukraine and its impact on the external demand and overall sentiment, Erste Group said in a statement on Monday.
"While domestic demand is seen remaining key growth pillar, private consumption momentum would ease in the coming quarters, taking into the account strong base effect and influence of higher inflation footprint. Investment activity should maintain overall steady role, still supported by the EU funds," Erste said.
On the external demand side, strong exports dynamics would continue to be offset by the rising pressures on imports, deflating net exports contribution, Erste noted.
Last month, the International Monetary Fund (IMF) downgraded its economic growth forecast for Slovenia in 2022 to 3.7% from 4.6% predicted in October.