Slovenia’s GDP expands 5% y/y in 3Q21

Slovenia’s GDP expands 5% y/y in 3Q21
By bne IntelliNews November 30, 2021

The Slovenian economy posted real GDP growth of 5% year on year in the third quarter of 2021, following the strong 16.3% growth in the previous quarter, according to non-seasonally adjusted data of the statistics office released on November 30.

As in the previous quarter, the household consumption expenditure and gross capital formation contributed the most to GDP growth in the third quarter, while the external trade balance had a negative impact.

In the first nine months, Slovenia's GDP expanded by an annual 7.4%.

In the third quarter, Slovenia’s seasonally adjusted GDP increased by 4.8% compared to the same period in 2020 and by 1.3% compared to the second quarter of 2021.

Household final consumption expenditure increased by 9.3% in the third quarter. High increase in household expenditure was observed in all types of household consumption except for purchase of cars, the statistics office said.

Gross fixed capital formation in 3Q21 expanded by 9.6% and the largest growth was observed in gross fixed capital formation in the group of other machinery and equipment (22.8%). 

Exports of goods and services increased 10.6% y/y and imports jumped by 19.9% y/y.

Slovenia's trade, transportation, accommodation and food service sector increased the most, by 8.8%, followed by professional, scientific, technical and administrative services (8.5%), other service activities (8%) and the IT sector (6.4%).

Mining and quarrying, manufacturing, electricity, water supply and the waste management sector also posted strong growth of 6%, of which manufacturing grew by 6.2%. The construction sector rose by 2.5% in the third quarter.

Earlier this month, the European Bank for Reconstruction and Development (EBRD) forecast Slovenia’s economy will grow by 6% this year, improving its projection by 1 percentage point (pp) compared to its previous set of forecasts.

In 2020, Slovenia’s GDP declined by a real 5.5% due to the consequences of COVID-19 pandemic.