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Gross domestic product will increase by 2%

Slovenia – Ministry of Economic Development and Technology | 26/09/2014

The improved international situation, reduced tension in financial markets and greater government investments have contributed to improving economic conditions in Slovenia. According to the Statistical Office, economic activity has been increasing since the beginning of last year. Year-on-year gross domestic product growth was 2.5 per cent, while the situation in the labour market also began to improve. Combined with the reduced tension in international financial markets, the overhaul of the banking system at the end of last year contributed to better borrowing terms for the government.

 

Exports will remain the main factor of economic growth, particularly exports to EU member states. Investment spending will also be higher, particularly due to high growth in investment in infrastructure in the first half of the year, which, according to estimates, is largely connected to the absorption of EU funds. 

 

After the substantial decline in the previous two years, consumer spending will increase this year. This will be followed by growth in disposable income as the result of labour market recovery, which will also be reflected in the growth in wages and employment. In the process of fiscal consolidation, government spending will continue to decrease this year with regard to more rational spending on goods and services.

 

In the next two years, economic recovery will be connected with strengthening exports and the recovery of consumer spending, while growth in investment spending will slow down, particularly due to expected public investment dynamics.

 

In line with the economic recovery, employment will rise for the first time since the beginning of the crisis (0.6%). Further growth is expected in the next two years, while the number of registered unemployed will gradually decrease. 

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