Slovenia’s economy recorded moderate growth in 2025, expanding by 1.1% in real terms, while seasonally adjusted growth stood at 0.9% for the year, according to preliminary estimates from the national Statistical Office. Momentum improved toward the end of the year, with GDP rising by 2.0% year-on-year in the fourth quarter and increasing by 1.6% compared to the same period a year earlier.
Economic activity in 2025 was largely supported by domestic demand. Household and government spending together helped drive growth, with total domestic consumption climbing 2.6%. Final consumption expenditure rose by 1.7%, reflecting similar increases in both household spending and public expenditure.
Investment activity strengthened significantly. Gross capital formation surged by 5.5%, while gross fixed capital formation rose by 4.1%. Investment in non-residential construction stood out, jumping 13.5%. In contrast, residential construction declined by 7.5%. Spending on machinery and equipment remained relatively flat, inching up by just 0.7%.
Foreign trade had a dampening effect on overall growth. Exports edged up by 0.3%, but imports rose at a faster pace of 2.1%, reducing GDP growth by an estimated 1.3 percentage points due to the weaker external balance.
The labor market showed slight weakness, with overall employment falling by 0.4%. The most pronounced declines were recorded in manufacturing and construction, where employment dropped by 1.8% and 2.4%, respectively.
Stronger Performance at Year-End
Although Slovenia’s seasonally adjusted annual growth of 0.9% trailed the euro area and EU averages—reported at 1.5% and 1.6%—the country outperformed the bloc in the final quarter. During that period, GDP expanded by 0.4% quarter-on-quarter and 1.6% compared to the previous year, slightly ahead of eurozone growth trends.
Private consumption accelerated notably in the last three months of the year, rising by 3.0%. Spending increased across most categories, particularly in services. Outlays on durable goods such as vehicles grew by 3.6%, while semi-durable goods rose by 2.9% and non-durable goods by 0.4%.
Government spending also strengthened, with final consumption expenditure up 3.8%, largely driven by a 6.3% rise in spending on individual public services.
Investment rebounded sharply in the fourth quarter. Gross capital formation jumped 13.2%, supported by both higher fixed investment and inventory accumulation. Investment in buildings and structures expanded by 17.3%, contributing significantly to the 12% increase in gross fixed capital formation. Residential construction posted a modest 1.6% rise after five consecutive quarterly declines, while investment in other structures soared by 22.7%.
After a year of contraction, investment in machinery and equipment returned to growth, increasing by 8.3% in the final quarter.
Trade activity picked up toward year-end, though imports continued to outpace exports. Exports grew by 0.5%, while imports advanced by 4.8%, maintaining pressure on the external balance.
Overall, Slovenia closed 2025 on firmer footing, with domestic demand and investment providing the main boost despite continued external trade challenges.
