It raised 2018 GDP growth forecast to 4.2 percent from 3.1 percent forecast earlier. GDP is seen rising by 3.6 percent in 2019, the bank said in a report.

"In the forecasted period we expect export growth which will per average exceed 6 percent (per year)," the bank said, adding imports will also rise so Slovenia's current account surplus will be reduced.

Exports are seen rising by 6.2 percent in 2018 versus 9.7 percent this year. Earlier in December the statistics office reported that October exports jumped by 20.6 percent year-on-year which was the highest export growth since February 2011.

The bank said unemployment will continue to fall over the coming years to reach 5.2 percent in 2020 from 6.7 percent this year.

"Gradual reduction of unemployment to below the level of the natural unemployment rate and structural discordance on the labour market will increase wage pressures," the bank said, adding costs per labour unit will consequently rise in the coming years.

It added average annual inflation rate will rise to 2 percent in 2019 from 1.4 percent in 2018 and 1.5 percent this year.

Investment will increase by 10.2 percent next year from 9 percent in 2017 while private spending will rise by 3.2 percent in each of the two years.

Slovenia, which narrowly managed to avoid an international bailout for its banks in 2013, returned to growth a year later.

Amid favourable economic figures a number of public sector trade unions are threatening to go on strikes in the coming weeks unless the government raises wages ahead of the general election which is expected in June.