Slovenia: Economy shrinks 6% YoY

Slovenia: Economy shrinks 6% YoY

Slovenia’s gross domestic product (GDP) fell 2.6% in Q3 year-on-year in real terms, as the Statistics Office reported on Monday. In seasonally-adjusted terms, GDP was up 12.4% compared to the previous quarter, while dropping 2.9% year-on-year.

In the first nine months of the year, Slovenia’s economy shrunk by 6% compared to the same period in 2019.

Domestic consumption in Q3 2020 was down by 5% YoY, with final consumption dropping by 0.3%, and gross investments by almost one fifth (-19.6%).

The main reason for the significant drop in gross investments laid in the reduction of inventories, the Statistics Office claims.

Exports in the third quarter decreased by 9.5% compared to the same period in 2019, with exports of goods dropped by 4.6% and exports of services by 25.8%.

Imports, on the other hand, were down by 13.1%, as imports of goods decreased by 11.2% and imports of services by 22.4%.

The decreased volume of travel contributed the most to the contraction of both exports and imports.

The Statistics Office stressed that, within final consumption in Q3, a drop was recorded only in final consumption by households (-0.9%).

“This reduction was less pronounced than in the first two quarters of this year,” the report notes, adding that in Q3 it stood at 6.3% and at 17.4% in Q2.

Final consumption by households on the domestic market was down by 6% year-on-year, with a reduction in expenditure for services and fuel contributing the most. Meanwhile, expenditure on durable goods was up by 4.3%.

Final state consumption rose by 1.4% in Q3 YoY, while gross investments in fixed assets fell by 1.8%.

Investments in machinery and equipment also dropped, while investments in buildings and civil engineering structures rose by 2.7%.

The number of persons in employment dropped by 1.8% or 19,237 year-on-year, to 1,034,564.

On an annual basis, Slovenia’s GDP in the first quarter of 2020 was down by 2.4%, while in Q3 it fell by 13%. In seasonally-adjusted terms, GDP dropped by 3.5% and 12.9% respectively.

In seasonally-adjusted terms at quarterly level, GDP was down by 4.7% in the first quarter and by 9.8% in the second.

Statistics Office analysts expect that at the end of the year, the GDP drop will not be as pronounced as in the second quarter. Initial assessments for the whole year are expected to be published at the end of February. /ibna