Hot topics

Slovenia Business Week no. 11: Slovenia's GDP 3.9% in 2005

Growth was propelled mainly by a strong rise in exports, which surpassed a rise in imports, so the external trade balance added 2.3 percentage points to the GDP figure

The Slovenian economy grew by 3.9% in 2005, according to preliminary figures released by the National Statistical Office on Thursday, 9 March, slowing down somewhat from the 4.2% of 2004.

Growth was propelled mainly by a strong rise in exports, which surpassed a rise in imports, so the external trade balance added 2.3 percentage points to the GDP figure. However, with the rise of imports towards the end of 2005, its impact began to vane.

High oil prices caused import prices to grow faster than export prices, causing the real and nominal GDP growth to stand just a percentage point apart.

GDP growth was also impacted by four working days less in comparison with 2004, which chipped off 0.3 percentage points of the rate, Karmen Hren of the Office told the press in Ljubljana.

Their impact was felt the most in the last quarter, when three extra bank holidays pushed the growth rate 1.5 percentage points lower than in the same period in 2004. The economy grew by 3.7% in Q4.

Domestic consumption was not a major contributor, as it only grew by 1.5% in 2005, much less than the 4.5% of 2004. The cause behind the drop was a decrease in gross investments, which picked up only in Q4.

Added value, mainly in manufacturing as well as in financial and business services has on the other hand contributed to the growth. Manufacturing alone added 0.7 percentage points to the GDP growth in real terms.

The 3.9% GDP growth rate is close to the average growth rate in the past ten years and one of the higher since 2000.

At current exchange rates, GDP amounted to EUR 27.365bn or EUR 13,700 per capita in 2005.

Source: Slovene Press Agency STA

Author: STA