OECD upgrades Slovenia's growth outlook

Paris, 2 May - The Organisation for Economic Cooperation and Development (OECD) has upgraded the outlook for Slovenia's growth. It expects the economy to expand by 2.3% this year, a 0.5 point increase on its previous forecast, and by 2.7% in 2025, the same rate it forecast late last year.

Berlin, Germany
OECD logo.
Photo: dpa/STA

The organisation expects both foreign and domestic demand to pick up.

Private consumption will be supported by a tight labour market and increasing real incomes as inflationary pressures slowly recede.

Meanwhile, government spending on reconstruction following the 2023 floods and the inflow of EU funds will sustain investment growth.

Fiscal policy will be expansionary in 2024 due to higher reconstruction spending, before tightening in 2025.

The OECD notes that there will be a structural increase in spending on long-term care, reflecting spending pressures from ageing, that will reach 1% of GDP in 2026.

It notes that further reforms are needed in the pension and health-care system "to ensure fiscal sustainability in the medium- to longer term".

© STA, 2024