Slovenia Outlook: 2024 GDP outlook taking a hit

GDP growth decelerated to 0.7% y/y in 2Q24. A detailed breakdown revealed support from both private and public consumption, while investments and net exports weighed on the headline figure. Looking ahead to 2H24, we see domestic demand as the main growth driver, with modest but improving performance expected in private consumption and investment. However, weak growth in Slovenia’s main trading partners is likely to dampen the export outlook. GDP is expected to increase by around 1.5% this year, followed by a strengthening growth profile in the 2025-26 period.