FX.co ★ Slovenia Economy Contracts for 1st time Since 2020

In the first quarter of 2025, Slovenia's economy experienced a year-on-year contraction of 0.7%, following a 1.5% growth in the prior quarter. This downturn represents the first contraction since the last quarter of 2020 and is largely attributed to a decrease in net external trade. Export growth slowed significantly to 0.1% from 3.9% in the fourth quarter, while import growth modestly decreased to 1.9% from 2.3%, ahead of anticipated US tariff implementations. Additionally, there was a noticeable deceleration in household spending, which rose by only 0.4%, compared to 1.2% in the previous quarter, and government expenditure grew by 2.6%, down from 5.7%. Investment in fixed assets also continued to decline, albeit at a slightly reduced rate of -5.1%, compared to -5.2% previously. When adjusted for seasonal variations on a quarterly basis, the economy saw a contraction of 0.8%, following a revised 0.3% decrease in the preceding quarter.