According to the Statistical Office of Slovenia, seasonally adjusted GDP decreased by 3.4% compared to the Q1 of 2019 and by 4.5% compared to the fourth quarter of 2019.

In the first quarter of 2020, decrease could mostly be attributed to domestic consumption as restrictions implemented in March took big toll. Domestic expenditure declined by 3.1% YoY due to both final consumption expenditure and gross capital formation. Namely, final consumption expenditure declined by 3.1% YoY while gross capital formation by dropped 3.3% YoY. As expected, expenditure of government increased (by +5.8%YoY) as government had to step in to protect jobs. 

Household final consumption, as the most significant component of the final domestic expenditure, decreased by 6.4% YoY and gross fixed capital formation by 6.3% YoY. The majority of gross fixed capital formation decreased, except construction investment and investment in intellectual property products. Construction investment increased by 3.8% and investment in intellectual property products increased by 1.7% compared to the Q1of 2019.  The above-mentioned results do come to some extent as a surprise, in spite the 2-week lockdown in March which occurred do to the Covid-19 outbreak.

In Q1, drop of external demand was recorded for the first time in ten years, except for second quarter of 2012 when it decreased by 0.1%YoY. Both Imports and Exports decreased by 2.5% and 1.6%, respectively. As a result of exports declining less than imports, the external trade balance had a positive contribution to GDP growth (+0.5 p.p.).

Source: Statistical Office of Slovenia