The Slovenian Statistical Office published its GDP figures for Q1 2023, showing that in real terms, it increased slightly by 0.7% YoY. Further, GDP also increased by 0.6% compared to the fourth quarter of 2022.
In Q1 2023, domestic consumption decreased by 4.4% YoY. However, the decline in domestic consumption occurred due to the change in inventories. The important thing to note is that the final household consumption expenditure grew by 2.1% (contributing the most to the overall GDP growth). Further, looking at the mentioned household consumption, it is worth adding that 2.1% growth is positive, but growth is starting to decline – as the previous quarter noted a 2.6% growth in this category (the quarter before that amounted to 3.3%).
Gross fixed capital formation noted a mid single-digit growth of 6.5% (+5.9% in the previous quarter). As previously mentioned, the changes in inventories had a negative impact on GDP growth. However, the external trade balance contributed by as much as 5.1 p.p. to GDP growth, which completely offset lower domestic expenditure. In total, exports went up by 1.9%, while imports were down 3.8% in Q1. Growth in total exports was driven by higher export of services (+7.9% YoY), while export of goods just slightly increased (+0.2% YoY) and amplified growth in services. Overall, the external trade balance on services was positive for the fourth consecutive quarter, while the external trade balance on goods was positive for the first time in two years. In total, everything abovementioned resulted in 0.7% YoY growth in the total Slovenian GDP.
GDP by expenditures, constant prices, growth rates (%)
Source: SURS
If we were to look at value-added activities at constant prices, construction, Other service activities and IT contributed the most to the total value added. For these activities, growth in the mentioned value added represent a continuation of a positive trend regarding its contribution to the total GDP.
Besides GDP and values added, the Slovenian statistical office also commented on the Slovenian employment rate trend. During Q1, total employment amounted to 1,080,200 persons, which represents an increase of 1.1% compared to the previous quarter. Most new jobs were created in construction and manufacturing.
