OECD projects drop of Slovenian economy by 7.8%

The Slovenian gross domestic product (GDP) might drop by 7.8% this year as well, due to the coronavirus crisis, according to the estimate of the Organization for Economic Cooperation and Development (OECD).

According to the up-to-date estimates of the OECD, published on Wednesday, in the case of the second wave of the COVID-19 epidemic this autumn, the Slovenian economy could drop by 9.1% this year, Seebiz portal reports.

If there is no second wave of the epidemic, the OECD projects a growth of 4.5% in Slovenia for 2021, but only 1.5% in case the epidemic returns.

Also, depending on whether there will be a second wave or not, the OECD, projects that the unemployment rate in Slovenia will be 6.4% or 6.9% this year and 5.4% or 8.1% next one.

As for the inflation, the OECD estimates that, in Slovenia, it will be 1% this year and 1.7-2% in 2021.

The OECD says that, so far, the Slovenian government has adopted fiscal measures for mitigating the economic consequences of the pandemic in the total amount of 4.5% of the GDP, but that additional measures for ensuring long-term sustainability of economic development in the new conditions are needed as well.

It especially warns that there's a need to solve the long-term, permanent unemployment and the need to reduce the ownership portfolio of the state in the economy, which it sees as too high.

Organization for Economic Cooperation and Development

OECD

Slovenian GDP

GDP drop

coronavirus

unemployment