Slovenia: Economy accelerates in Q4
March 1, 2017
GDP expanded 2.6% in the fourth quarter over the same quarter of the previous year. The reading was slightly above the 2.5% increase observed in the third quarter and was mainly driven by an acceleration in domestic demand. Conversely, the external sector’s contribution to overall growth lessened in Q4.
Growth in private consumption jumped to 4.1% in Q4 (Q3: +2.1% year-on-year), which marked the highest print in nine years. Government consumption also gained steam in Q4 and expanded 2.8% on an annual basis, up from the previous quarter’s 1.7% increase. Although fixed investment improved in the last quarter of 2016, it remains largely subdued (Q4: +0.9% yoy, Q3: -2.5% yoy)
On the external side of the economy, growth in exports slowed from 5.6% in Q3 to 4.6% in Q4. Meanwhile, imports expanded 6.3%, which was above the previous quarter’s 5.0% rise. As a result, net exports were a drag on overall economic growth, subtracting from it 0.8 percentage points—the lowest contribution since December 2007.
On a quarter-on-quarter, seasonally- and working day- adjusted basis, GDP recorded a 1.2% expansion in Q4, which was above the 1.0% increase observed in Q3.
Author: Luis Lopez Vivas, Economist