According to the Bank of Slovenia, GDP in Slovenia is expected to fall by 7.6 percent this year. At the same time, the June growth estimate for next year has been lowered from 4.9 to 3.1 percent, and for 2022 from 3.6 to 4.5 percent, said the Vice Governor of the Bank of Slovenia, Jozef Bradesko.
The Bank of Slovenia warned, that the realization of the forecast will depend mainly on the success of the introduction of the Covid-19 vaccine, emphasizing that the decline in economic activity has been greatly mitigated by stimulus measures from economic policy.
State measures also play an important role in maintaining stable labor market conditions. The Bank of Slovenia believes that they will increase unemployment less than previously expected. Despite a more than 7% reduction in hours worked, employment will fall by 1.5% this year. Consumer prices will fall 0.2 percent this year. After the improvement of the epidemiological situation, the Bank of Slovenia expects a gradual increase in price pressures, and an increase in inflation.
