Bank of Slovenia slashes 2012 GDP fcast

LJUBLJANA, Oct 1 (Reuters) - The Bank of Slovenia has cut its growth forecasts for the small euro zone country as it struggles to avoid an international bailout, saying the economy would shrink by 1.8 percent in 2012 and 0.7 percent in 2013.

The bank in April forecast a decline of 1.2 percent this year and growth of 0.6 percent next year. The government last week put this year's economic decline at 2.0 percent, with another contraction of 1.4 percent seen in 2013.

The bank saw average 2012 annual inflation at 2.9 percent compared to 2.3 percent forecast in April, expecting it to slow to 2.3 percent next year.

(Reporting By Marja Novak; writing by Zoran Radosavljevic; editing by Patrick Graham)

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