Slovenia: Economic growth slows in the third quarter
November 30, 2010
In the third quarter, gross domestic product (GDP) added 1.7% over the same period last year. The result represented a slowdown over the 2.1% expansion recorded in the second quarter (previously reported: +2.2% year-on-year). According to the Central Bank, poor economic recovery figures mostly reflected weaker construction activity. The moderation in economic growth was broad-based, as both the domestic and the external sector deteriorated compared to the previous quarter. Gross fixed investment drifted further into recession, falling from a 4.9% contraction in the second quarter to a 9.3% decline in the third. Private consumption improved slightly and contracted 0.4% over the same period last year compared to 0.6% contraction in the second quarter. The net contribution from the external sector to overall economic growth increased, as exports decelerated less notably than imports over the previous quarter. Exports of goods and services added 10.5% in the third quarter (Q2: +11.4% yoy), while imports expanded only by 4.8% (Q2: +10.2% yoy). The net contribution from the external sector to overall growth jumped from a 0.7 percentage-point contribution in the second quarter to 3.7 percentage points in the third. A quarter-on-quarter analysis corroborates the slowdown suggested by the annual figures, as the economy grew a seasonally adjusted 0.3% over the previous quarter, which was below the 1.0% expansion in the second quarter.