Slovenia: GDP in the second quarter of 2021 at the annual level up by 16.3%

Slovenia: GDP in the second quarter of 2021 at the annual level up by 16.3%

In the second quarter of 2021, Slovenia’s gross domestic product (GDP) increased by 16.3% over the second quarter of 2020. Seasonally adjusted GDP increased by 15.7% compared to the second quarter of 2020 and by 1.9% compared to the first quarter of 2021, the national Statistic agency reported.

In the second quarter of 2021, the household consumption expenditure and gross capital formation contributed the most to GDP growth, while the external trade balance had a negative impact.

Household final consumption expenditure increased by 18.8% in the second quarter of 2021. The increase in 2021 was by 5.7 percentage points larger than the decrease in the same period of 2020. Because of these dynamics, the household consumption expenditure in the second quarter of 2021 was even higher than in the second quarter of 2019. A high increase in household expenditure was observed in all types of household consumption.

Gross fixed capital formation in the second quarter of 2021 increased by 19.2%; the largest growth was observed in gross fixed capital formation in other machinery and equipment (43.2%). Compared to the same period of 2020, we observed an increase in the majority of gross fixed capital formation. Changes in inventories also increased and had a positive impact on GDP growth (3.4 percentage points).

Imports and exports increased: imports by 34.9% and exports by 30.2%. Exports and imports of goods increased more than exports and imports of services. Due to higher growth of imports than exports and worse terms of trade, the contribution of the external trade balance to GDP growth was negative (0.3 of a percentage point).

Total employment in the second quarter of 2021 was 1,044,000 persons. Compared to the second quarter of 2020, it increased by 1.4% or about 14,000 persons. The majority of new jobs was created in manufacturing, human health and social work activities, administrative and support services, and construction (in each of these activities around 3,000). In some branches employment decreased, the most in accommodation and food service activities. In this branch, employment had been decreasing since the second quarter of 2020, but in the second quarter of 2021, the decrease was less prominent than in the previous two quarters.