Zagreb, 15 May (STA) - The European Bank for Reconstruction and Development (EBRD) has downgraded its January estimate of Slovenia's economic growth for 2010 from 1.9% to 1.3% in its latest report. In 2011, Slovenia's economy is expected to grow at 2.2%, according to the report.
The forecast for this year was downgraded due to the non-implementation of reforms in the financial sector and too much state intervention in the economy.
Last year, Slovenia's GDP shrank by 7.8%, the EBRD said, but noted that growth would gradually return.
The forecast for the region was meanwhile upgraded from 3.3% to 3.7%. But recovery in the region was nevertheless labelled as uncertain and slow.
Next year, the EBRD expects to see a 4% growth in the region.