Slovenian economy almost back to pre-crisis level

Slovenia’s gross domestic product (GDP) increased by 16.3% year-on-year in the second quarter on the back of robust government and consumer spending, with annualised output just short of the pre-crisis peak of 2019.

Data by the country’s Statistics Office show investment spending increasing by nearly 20% over the same quarter last year as companies invested heavily in machinery and equipment.

Household spending was up by nearly as much and already exceeded pre-crisis levels as consumers transformed record savings into purchases of goods and services.

Exports were up by more than 30%, but with imports growing at an even brisker pace, the net contribution of foreign trade to growth was in fact negative.

The central bank said that Slovenia’s economy had almost returned to pre-Covid levels and was just 0.2% below the 2019 peak, a level likely exceeded since June.

IMAD, the government’s macroeconomic forecaster, however, warned that the prospects for this quarter were uncertain given the renewed increase in coronavirus cases in recent weeks. A lot will depend on the uptake of vaccines, new government measures, and how companies and households adapt to the new situation. (Sebastijan R. Maček | STA)