Slovenia: Economic growth moderates slightly in Q3 on sharp investment decline
November 30, 2015
GDP expanded 2.5% in Q3 over the same quarter of the previous year, which was slightly below the 2.6% increase recorded in Q1. The result was the lowest in six quarters and suggests that the economy is struggling to turn around and gather positive momentum.
Q3’s mild deceleration mainly reflected a further slump in investment. Gross fixed investment contracted 3.9% over the same quarter of the previous year, which followed the 1.5% decrease tallied in Q2. The decline in gross fixed investment was driven by a steep drop in construction investment, which offset higher investment in machinery and equipment. Private consumption rose 1.3% in Q3, which was weaker than the 1.7% increase registered in Q2. Government consumption increased 0.9%, which was up from the 0.4% decline in Q2.
Exports of goods and services rose a solid 4.5% in Q3, although this was down from the 5.5% increase recorded in Q2. Imports expanded 1.7% in Q2, which was well below the 3.7% expansion in Q2. As a result, the external sector’s net contribution to overall economic growth improved from 1.6 percentage points in Q2 to 2.2 percentage points in Q3.
On a quarter-on-quarter, seasonally- and working- day adjusted basis, GDP recorded a 0.4% expansion in Q3, which was below Q2’s 0.7% increase.
Author: Carl Kelly, Economist