Economy Shrinks “Just” 0.6% Y/Y in Q3

Despite the latest signs of a stabilisation in domestic consumption, the Slovenian economy has now failed to register growth for eight consecutive quarters.

In the first nine months of 2013, GDP fell by 2.2% compared to the same period a year ago. Adjusted for working days and season, GDP was unchanged on the previous quarter and down 1.3% on the third quarter of 2012.

The Statistics Office said that economic conditions in the country had not shown much sign of change in the third quarter, as domestic consumption continued to slow economic activity, while exports prevented a deeper contraction.

Consumption shrank by 2.8% in the quarter, an improvement on the 3.5% drop in the previous quarter, as the contraction in gross fixed capital formation showed signs of bottoming out.

Trade continued to be the engine of growth, expanding by 4.9% and contributing to a positive trade balance of 1.9%.