Slovenian government-related institute IMAD has halved its GDP growth forecast for 2020 to 1.5% from 3% due to the uncertainty caused by the coronavirus pandemic, it said on March 12.
Slovenia’s GDP expanded by an annual 2.4% in 2019, slowing significantly from a 4.5% growth a year earlier, according to statistics office data.
"Regarding the expected gradual containment of the coronavirus spread and stabilisation of the situation in the second half of this year, economic growth would ease to around 1.5% this year, before rising somewhat again in the next two years," IMAD said.
2020’s slowdown in economic growth following last year’s notable moderation in the last quarter mainly reflects lower growth in foreign demand, which is increasingly affected by the great uncertainty related to the consequences of the coronavirus pandemic, IMAD said.
Growth in household consumption will be lower than in 2019, but should remain relatively robust.
Investment will most likely not exceed last year’s levels. In 2021 and 2022 economic growth could again be somewhat higher than this year, the institute said.