Unemployment numbers likely to hit record high, consumers cautious in Slovenia

Pessimism among Slovenian consumers increased in February, mainly due to their expectation that unemployment will increase as the economic situation in the country worsens, the statistics office said on Wednesday. Consumer confidence index reached minus 5 points versus minus 3 a month before and was 5 points lower than a year ago. Confidence decreased for the first time since September, when it reached an 18-month low with minus 9 points.

"Consumers were also more pessimistic regarding the expected financial position of their households," the office said. Earlier in February the European Commission cut its 2019 GDP growth forecast for Slovenia to 3.1 per cent from 3.3 per cent. Slovenia's economy expanded by some 4.4 per cent in 2018.

The government's macroeconomic institute UMAR is next month also expected to reduce its GDP growth forecast for this year from the 3.7 per cent it forecast in September, mainly due to expected lower growth of exports and investments amid economic slowdown of Slovenia's main trading partners, such as Germany and Italy.