The growth forecast by the Organisation for Economic Co-operation and Development (OECD) represent a downgrade on its November forecast, which envisaged Slovenia's economy to expand by 2% this year and 2.8% next year.
"Growth will gradually enhance, as private investment and spending is rising," the report says about Slovenia, which joined the organisation in July 2010.
The survey unemployment rate will reach its peak by mid-2011 and will stand at 7.7% this year, the survey suggests. In 2012, the unemployment rate will drop to 7.5%.
Growth in exports, which last year amounted to 7.8%, is expected to stand at 5.6% this year and pick up to 6.8% in 2012.
Meanwhile, imports will grow by 5.3% this year and by 6.3% next year, the OECD forecasts.
It also says that the slower economic growth will restrain inflationary pressure brought about by global rises in the prices of food and energy.
The organisation reiterated that the pension reform, which faces a referendum on 5 June, was crucial for long-term sustainability of Slovenian public finances. It also called for a reform of the labour market.
SOURCE: The Slovenia Times
