Slovenia Economy Contracts for 1st time Since 2020

Slovenia’s economy fell by 0.7% year-on-year in the first quarter of 2025, after expanding 1.5% in the previous three-month period.

This marked the first contraction since the fourth quarter of 2020, primarily driven by a decline in net external trade, as exports (0.1% vs 3.9% in Q4) grew more slowly than imports (1.9% vs 2.3%), in anticipation of the impending implementation of US tariffs.

In addition, household consumption (0.4% vs 1.2%) slowed, as did government spending (2.6% vs 5.7%).

Meanwhile, fixed investment declined at a softer pace (-5.1% vs -5.2%).

On a seasonally adjusted quarterly basis, the economy contracted by 0.8%, reversing a downwardly revised 0.3% fall in the previous three-month period.