LJUBLJANA, Sept. 12 (Xinhua) -- Slovenia's economy will expand by 1.5 percent this year, the government's macroeconomic institute UMAR said on Thursday, cutting its February forecast, saying that exports and investments will be lower than seen earlier.
The institute expects gross domestic product (GDP) to rise by 2.4 percent in 2025. In February, the institute forecast GDP growth of 2.4 percent this year and 2.5 percent in 2025.
The institute also said December-on-December inflation this year will be 2.3 percent which is significantly lower than 3.1 percent it had forecast in February. Inflation is expected to rise to 3.3 percent next year.
"We expect that export growth will be lower than seen earlier due to lower demand from abroad," UMAR said in a report, adding that exports will rise by 0.9 percent this year.
Slovenia's main trading partners are other European Union states.
It also said investments will stagnate this year versus an investment growth of 3.9 percent in 2023. However, investments are expected to pick up in 2025 and 2026 when they are seen rising by 3.5 percent each year.
"In 2025 we expect stronger rise of exports ... and higher investments in manufacturing and construction," the institute said, adding that investment activity of the state will increase next year as reconstruction after record floods in August 2023 is expected to speed up.
