After contracting by an estimated 5.5% in real terms last year, Slovenia’s economy returned to growth in the first quarter of the year as GDP expanded at an annual rate of 1.6% in real terms or by as much as 2.3% when adjusted for season.
It rose by 1.4% from the final quarter of 2020, data from the Statistics Office show. The year-on-year growth was driven most prominently by gross fixed capital formation, as well as by exports and household consumption expenditure. Investment in construction declined. Commenting on the growth figures, the central bank noted that unlike the eurozone, Slovenia’s economy started recovering as early as the first quarter.
OECD upgrades GDP forecast for Slovenia
The OECD has upgraded its forecast for Slovenia’s GDP growth in 2021 to 3.5%, up 0.1 percentage points from its December forecast, and to 4.6% for next year, a rise of 1.1 points. It said that new restrictions related to the coronavirus pandemic slowed down Slovenia’s recovery at the start of this year, but as vaccination progresses, the country’s growth should pick up in the second half of the year.