Economic Mirror: A sharp fall in economic growth and a deep recession in 2020

10. 6. 2020

The consequences of dealing with the COVID-19 epidemic are being felt in the entire euro area – a decline in economic activity, historically low indicators of confidence and expectations, forecasts of a deep recession in 2020. In this uncertain situation, the pace of recovery will to a great extent depend on epidemiological conditions and economic policy measures at various levels.

Since March, the epidemic and the urgent measures to contain its spread have also had a severe impact on economic activity in Slovenia, which has contracted particularly in individual more exposed sectors (trade, transportation, tourism, accommodation and food service activities). In the second quarter, the decline in activity is expected to deepen. Following a steep fall in April, economic sentiment improved somewhat in May, but confidence in all sectors and among consumers remains at record lows. With the adoption of containment measures, labour market conditions started to deteriorate noticeably in March. After a rapid rise, growth in the number of unemployed slowed down and only came to a halt only in recent weeks. By the end of May, the number of unemployed had risen to 90,415, which is 25.6 % more than a year earlier.