Slovenia: Economy accelerates in Q2
September 22, 2016
GDP expanded 2.7% in the second quarter over the same quarter of the previous year. The reading was up from the 2.4% increase observed in the first quarter and was mainly driven by an improvement in domestic demand. Conversely, the external sector’s contribution to overall growth disappointed in Q2.
Growth in private consumption increased from 1.2% in Q1 to 2.6% in Q2, hitting the highest reading since Q2 2008. Government consumption increased 2.1% in the second quarter, which was however down from the 3.4% rise seen in the first quarter. Fixed investment contracted 3.6% in Q2, which was a milder contraction compared to the previous quarter’s 7.8% decrease.
On the external side of the economy, growth in exports accelerated to 7.5% in Q2, up from Q1’s 5.9%. Moreover, imports grew 7.2% in Q2, thus improving from the 4.9% rise observed in Q1. As a result, the net contribution of the external sector on overall growth decreased from 1.2 percentage points in Q1 to 0.8 percentage points in Q2.
On a quarter-on-quarter, seasonally- and working-day adjusted basis, GDP recorded a 0.5% expansion in Q2, which mirrored the increase observed in Q1.
Author: Dirina Mançellari, Senior Economist