Slovenia’s Economy Accelerates With 5% Growth in Second Quarter

Slovenia’s economy grew by 5.0% year on year in real terms in the second quarter of 2026, marking its strongest growth since early 2022 and placing the country among the fastest-growing EU economies with available data

The latest figures from Slovenia’s Statistical Office show that growth accelerated significantly from 3.2% in the first quarter. GDP expanded by 4.1% in the first half of the year compared with the same period in 2025.

Growth was largely driven by strong domestic demand, which increased by 5.9%, supported by higher household consumption and a significant rise in investment.

Construction emerged as the biggest driver of growth, with value added in the sector surging 15.9% year on year. Investment in buildings and structures jumped 19%, including a 5.8% increase in residential construction and a 23.6% rise in other buildings and structures.

Household consumption also strengthened, increasing 3.4%, its fastest growth in six quarters. Spending on durable goods was particularly strong, rising by 10.1%.

Investment remained another major source of momentum, with gross fixed capital formation increasing 13.2%. Investment in machinery and equipment rose 10.1%, while spending on transport equipment increased 14.7%.

Slovenia’s external trade also expanded, with exports of goods and services rising 6.4% and imports growing 7.6%. The faster increase in imports nevertheless reduced overall GDP growth by around half a percentage point.

Other important sectors also recorded solid gains. Value added in trade, transport and hospitality increased 5.2%, while manufacturing grew 4.3%, reaching its strongest performance in 18 months.

Employment continued to edge higher as well, with the number of people employed rising 0.3% year on year to 1.101 million. The strong first-half performance comes well above current full-year growth forecasts for Slovenia, which are generally around 2%. However, economic institutions remain cautious about the outlook, pointing to uncertainty in international markets, the impact of the war in the Middle East and increasingly frequent extreme weather events as potential risks to future growth.

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