The Slovenia Times

Economy Picks Up Speed, Expanding 2.9% Y/Y



Adjusted for season and working days, the EU gauge, the country's economy expanded by 1% on the first quarter and 2.8% year-on-year.

While exports remained the engine of Slovenia's economy, a key contributing factor to the third consecutive quarter of year-on-year growth - the fastest rate so far since the end of the recession - was domestic consumption.

With employment rising by 0.7% and gross capital formations surging 8%, domestic consumption was up by 1.4% overall.

Gross fixed capital formations expanded by 5.2% on the back of 24% growth in investment in construction, while inventories registered a net 0.6% expansion.

Household spending meanwhile continued to show weak growth at 0.2%.

Moreover, there was no signs of a recovery in the spending of the general government, which retreated by 1.9%, an unchanged pace from the quarter before.

Slovenian exports expanded by 5.2%, outpacing the growth of imports at 3.3% to contribute a 1.6% net positive external trade balance.

Expanding by 19% on last year, the construction sector, which was hardest hit by the crisis, continued to lead in terms of expansion in value added in the second quarter. It had registered 15.6% growth in the previous quarter.

Agriculture, forestry and mining saw a 7% rise in output and the key manufacturing sector grew by 3.7%.

The contraction meanwhile continued in the real estate sector (-1%), financial services and insurance (-0.9%) and the public sector (-0.2%).

The latest GDP figures were compiled applying the most recent EU standard, BDP ESA 2010, as part of which the Statistics Office also revised data going back to 1995.

As part of the revision, the country's GDP was 1.8% bigger on average in the 19-year period than using the previous standard.

Moreover, the GDP figure for last year was also revised using the latest input data to EUR 36.144bn, a drop of 1% in real terms over 2012 (previously at 1.1%).


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