The pandemic is inflicting much suffering, which has been met with swift, substantial, and well-coordinated policy responses. The anti-crisis measures have helped preserve jobs, provide liquidity to companies and income support to the vulnerable groups. They averted a larger decline in output and kept unemployment under control. After contracting by 5.5 percent in 2020, real GDP is projected to grow by 3.9 percent in 2021 and 4.5 percent in 2022, as vaccinations help achieve herd immunity. However, risks to the outlook are large and tilted to the downside, given the epidemiological situation.
1. After containing the first wave of COVID-19, Slovenia witnessed an exponential increase of cases during the second wave. Since the first confirmed COVID-19 infection on March 4, 2020, there have been over 200 thousand cases (10 percent of the population) and more than 4,000 deaths. The first wave of infections was relatively contained, and the authorities lifted most restrictions in May. COVID-19 cases surged in the fall, prompting another lockdown in October, and a third one in April 2021. The share of old-age population and prevalence of comorbidities have contributed to a high death rate.