LJUBLJANA, Dec. 22 (Xinhua) -- The Bank of Slovenia has lowered its forecast for the country's 2025 economic growth to one percent, down from the 1.3 percent projected in June, citing weak economic conditions and external uncertainties.
"Growth this year will be weak at around one percent, mainly due to unfavorable economic conditions at the beginning of the year and uncertainty related to U.S. trade policies," the bank said in a report released on Monday.
The revised figure marks Slovenia's slowest growth since 2020, when the economy contracted due to the COVID-19 pandemic.
The bank expected annual inflation to rise to 2.5 percent in 2025, up from 2 percent in 2024, before easing to 2.3 percent in 2026.
Economic growth is projected to recover in 2026, supported by increased state investment, stronger exports, and a rebound in employment. Gross domestic product growth is forecast at 2.2 percent in 2026, followed by 2.4 percent in 2027 and 2.1 percent in 2028.
Exports are expected to increase by 3.1 percent in 2026, compared with a marginal rise of 0.2 percent in 2025, according to the bank. Slovenia's major exports include pharmaceuticals, automobiles, auto parts, and household appliances.
Employment is projected to grow 0.2 percent in 2026, following a decline of 0.5 percent in 2025. The report noted that employment declined in 2025 largely because of difficult conditions in manufacturing and other export-oriented sectors, as demand for Slovenian products weakened amid an economic slowdown in the European Union, Slovenia's key trading partner.
