Slovenia’s economy expands by 2.1% y/y in 1Q24

Slovenia’s economy expands by 2.1% y/y in 1Q24
Slovenia’s economy expands by 2.1% y/y in 1Q24 / bne IntelliNews
By bne IntelliNews May 15, 2024

Slovenia’s economy grew by an annual 2.1% in the fourth quarter of 2024 (chart), according to non-seasonally adjusted data released by the statistics office, SURS, on May 15.

Seasonally adjusted data indicate a year-on-year increase of 1.8%, whereas quarter-on-quarter comparison reveals that the GDP remained unchanged.

Domestic expenditure rose by 1.7% in the first quarter of the year, marking the highest increase in the last six quarters. Final consumption expenditure increased by 2.0%, slightly lower than the previous quarter's increase.

Fixed capital formation rebounded with a 0.9% increase after four consecutive quarters of decline. Positive contributions were made by changes in inventories.

However, gross fixed capital formation saw a notable slowdown, rising by 0.6%, significantly less than the quarterly growth rates observed in 2023, ranging between 7.7% and 11.2%. This slowdown was particularly evident in investment in buildings and structures. Household consumption expenditure experienced a modest increase of 0.9%.

In the first quarter of 2024, compared to the same period in 2023, Slovenia witnessed a reduction in external trade, although the decline was less pronounced than in the preceding three quarters. Imports dipped by 0.9%, with goods imports dropping marginally by 0.1% and services imports declining by 4.8%.

Similarly, exports also fell by 0.6%. Notably, exports of services dropped by 7.1%, whereas exports of goods saw a modest increase of 1.1%. Despite the downturn, the external trade surplus contributed 0.2 percentage points (pp) to GDP growth.