Slovenia’s Post-crisis Economy: Positive Trends

From the beginning of this year, the greatest production growth rates have been observed in the high technology sectors of the economy.

Improvement of the Slovenia’s economy is becoming more evident. This is evidenced by the analysis prepared by the Department for Macroeconomic Analysis and Development (Umar). For example, according to the results of the first eight months of 2016, the performance indicators within the manufacturing industry reached the pre-crisis level of March 2009.

The tourism industry indicators also improved, the same as the construction performance did for the last several months. All this is reflected in the share of employed population, which has almost reached the index of the pre-crisis years, as noted in the Umar.

In the latest issue of the ‘Ekonomsko ogledalo’ journal, the analysts pointed out that the majority of short-term indicators of economic activity in Slovenia showed growth during the transition to the III quarter of 2016.

The exports of goods and manufacturing production grew up having exceeded the level of 2008 for the first time. From the beginning of the year, the greatest production growth rates were observed in the high technology sectors of the economy, which largely exceeded the pre-crisis figures. The only lagging sector of economy is the manufacture of machinery and equipment, which has not yet reached the pre-crisis levels in the EU as well.

The revenues have also increased in the area of market services. Under the improvement of the labour market situation and the rise in individual consumption, the indicators of some trade segments continued to grow.

The Tourism in Slovenia Is Developing

The increase in tourist flow and subsequently the injection of travellers’ money resources contributed to the growth of revenues within the tourism-related services. The microclimate in the economy is also improving, which indicates on the continuation of positive trends.

The number of employed persons continues to rise. This applies to manufacturing industry, science and technology, hospitality industry and trade.

A decline in the number of registered unemployed persons continued, since by the end of September, 95,125 people were listed in the register, which is 9.2% lower than a year earlier. The average gross salary has not changed a lot in the past few months and remains on the level of the end of 2015 figures.

The favourable situation in the economy and in the labour market contributes to an increase in revenues from taxes and fees. However, the amount of general revenues to the treasury has not changed in the current year, because during the transition to the new financial period, the amount of allocated funds from the EU will decrease by 40%.

According to analysts, the governmental expenditures declined, primarily due to the nearly 50% decrease in the investment costs and due to the reduced contributions to the EU budget as well.

The share of bad bank loans continues decreasing. In late July, it amounted to 7.3% of all bank claims.