March 6 (SeeNews) - The Slovenian government's Institute of Macroeconomic Analysis and Development, UMAR, upgraded its 2023 economic growth forecast to 1.8% from 1.4% projected in September, but revised down its 2024 forecast to 2.5% from 2.6%, it said.
"The data on the GDP growth in the fourth quarter of last year, which slightly exceeded expectations in Slovenia and the euro area, is encouraging, reflecting the resilience of the economy and the effects of the measures adopted to mitigate the effects of the energy crisis," UMAR director Maja Bednas said in a statement last week.
UMAR expects moderate investment growth in 2023, supported by public and EU funds, as well as weak growth in private consumption and exports, which will grow faster again in the second half of the year, the institute said.
The growth of foreign trade and the export sector will slow down this year in line with the slowdown in economic activity in Slovenia's main trading partners and further cost pressures, UMAR noted.
In 2024, the volume of state investments is expected to decline, mainly in connection with the cycle of using EU funds, whereas the growth of private consumption will strengthen, the institute said.
Last month, the European Bank for Reconstruction and Development (EBRD) said it estimates Slovenia's GDP to increase by 1.0% in 2023, cutting its 1.8% growth forecast made in September. In 2024, Slovenia's GDP is expected to grow by 2.3%, the EBRD said.