LJUBLJANA: Slovenia's economy grew 5 percent in 2017, its highest rate of growth since 2007, with higher exports and investment fuelling an acceleration from 2016's 3.1 percent expansion, the statistics office said on Wednesday.
Growth was higher than expected and is likely to slow this year, analysts said.
"I believe growth in 2018 will be between 4 and 5 percent but still below last year's expansion as the country is dependent on exports which are likely to rise at a slower rate in 2018," said Iztok Trobec from the treasury department at Dezelna Banka.
The 43 billion euro ($52.53 billion) economy exports over 60 percent of what it produces, mainly to other European Union countries. Main exports include cars, car parts, pharmaceuticals and household appliances.
Exports jumped by 10.6 percent last year while investments were up by 8.4 percent, the statistics office said. Household spending increased by 3.2 percent.
The economy expanded by 2 percent in the last quarter of 2017 from the previous three months, which was the highest quarterly increase since July-September 2007. Exports jumped by 12.3 percent year-on-year in the final quarter.
The statistics office said the jobless rate in Q4 2017 fell to 5.8 percent, the lowest level in 8.5 years.
Year-on-year inflation reached 1.4 percent in February versus 1.7 percent in January.
Slovenia, which narrowly avoided needing an international bailout for its banks in 2013, returned to growth a year later and has since managed to strongly increase exports and reduce unemployment.
The government said in September it expected GDP growth of 3.9 percent in 2018 but its macroeconomic institute is due to revise this figure in the middle of March.
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