Slovenia: Economic growth moderates in Q1
May 31, 2016
GDP expanded 2.5% in Q1 over the same quarter of the previous year, which was below the 3.3% increase recorded in Q4. The result marked the weakest growth rate since Q1 2014. The deceleration reflected sluggish growth in domestic demand, while the external sector improved markedly. Private consumption rose a lackluster 0.6%, which contrasted the buoyant 2.6% increase tallied in Q4. Government consumption slowed down a notch, growing 2.7% in Q1 (Q4: +3.0% year-on-year). Moreover, fixed investment plummeted in Q1, swinging from a 3.4% rise in Q4 to an 8.2% drop and marking a multi-year low.
Exports of goods and services rose 5.3% in Q1, which was above the 3.3% increase recorded in Q4. Imports expanded 3.2% in Q1, which was below the 3.9% expansion in Q4. As a result, the external sector’s net contribution to overall economic growth swung from minus 0.1 percentage points in Q4 to plus 1.9 percentage points in Q1.
On a quarter-on-quarter, seasonally- and working- day adjusted basis, GDP recorded a 0.5% expansion in Q1, which was slightly down from the 0.6% increase observed in Q4.
Author: David Ampudia, Economist