Slovenia’s GDP jumps 16.3% y/y in 2Q21 boosted by strong growth in manufacturing sector

Slovenia’s GDP jumps 16.3% y/y in 2Q21 boosted by strong growth in manufacturing sector
By bne IntelliNews August 31, 2021

The Slovenian economy posted strong GDP growth of 16.3% year on year in real terms in the second quarter of 2021, following 1.6% growth in the previous quarter, the statistics office said on August 31.

The central bank commented that the country's economic activity in the second quarter approached the pre-crisis level, as the COVID-19 epidemic was subsiding.

In June, the central bank upgraded its economic growth projection for 2021 by 2.1 percentage points (pp) to 5.2%, after the epidemiological situation in the country improved.

In the second quarter, Slovenia’s seasonally adjusted GDP increased by 15.7% compared to the same period in 2020 and by 1.9% compared to the first quarter of 2021.

Household consumption expenditure (+18.3%) and gross capital formation (+35.9%) contributed the most to the GDP growth, while external trade balance had a negative impact (-0.3%), the statistics office said.

Exports of goods and services jumped 30.2% y/y and imports soared by 34.9% y/y.

Slovenia's mining and quarrying, manufacturing, electricity and water supply, waste management sector increased the most by 26.6%, of which only the manufacturing sector jumped 27.4% in the second quarter.

Professional, scientific, technical, administrative and support services were up 21.8% y/y, while trade, transportation, accommodation and food service sector grew 20.1%. The IT sector increased 10.8% y/y while construction sector was up 8.7% in the second quarter.

All sectors registered an increase in the period under review, unlike in the previous quarter when there was a drop in three sectors. The lowest increase was registered in the financial and insurance sector of 0.4%.

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