The Bank of Slovenia reports that the domestic economy grew in the first quarter of 2026, despite weak industrial production and slowing consumption.
The Bank of Slovenia reports that the domestic economy grew in Q1 2026, despite weak industrial production and slowing consumption. Inflation eased to 2.4% in March, mainly due to stabilizing food and energy prices, though the Middle East conflict has raised consumer inflation expectations. Employment remained stable year-on-year, while wage growth accelerated in January following a 16% minimum wage increase—the largest in the EU this year. This wage rise, combined with relatively weak productivity, is putting pressure on the economy’s cost competitiveness. Looking ahead, the Institute of Macroeconomic Analysis and Development (IMAD) and the IMF both forecast GDP growth of 2% for 2026, up from 1.1% in 2025. Export growth is expected to accelerate, with projections of 2.3% in 2026 and 3% in 2027.
