Economic growth remains high and broadly-based; Investments are intensifying
Year-on-year GDP growth was higher in the third quarter (4.8%) than in the previous quarter (4.3%). The growth of economic activity (1.3%) also accelerated in relation to the previous quarter (0.9%) and exceeded the growth in the EU average (0.3%).
Graph: Quarterly GDP growth in Slovenia and the EU
"Growth of economic activity continues to be broadly based. Investments have been noticeably strengthening for several quarters, especially in construction, and the growth of business investments to increase production and service capacities is also continuing," explains Maja Bednaš, Acting Director of IMAD. This is further influenced by high capacity utilisation, better financial status of companies and favorable financing conditions.
Despite the growth slowdown in the export sector of the economy that follows the trends of the most important trading partners, exports remain an important driver of growth. "The slowdown in export growth we attribute, in particular, to lower growth in foreign demand, with the slowdown in economic activity by our key trading partners," explains IMAD. In line with the movement in export activity, the growth of production in manufacturing also slowed.
Household spending is somewhat surprisingly at last year's level. The improvement of the labour market situation is continuing. The number of persons in employment continues to increase rapidly, wage growth is higher (in the third quarter of 3.0%). In the absence of (adequately) skilled workers, the employment of foreign nationals is increasingly contributing to the growth of people in employment (about half in the third quarter), accounting for about a tenth of all persons in employment (mostly in construction and some services).
Institute of Macroeconomic Analyses and Development