Central bank points to signs of economic slowdown

Ljubljana – The Slovenian economic activity remains high but there are signs of a slowdown, the central bank says in its latest publication. The use of production capacities is high, the pre-crisis level of activity has been reached, and there is a shortage of raw materials and intermediate goods, and qualified workers, Banka Slovenije says.

The situation in the market allows for further growth in private consumption. In July, the number of active population reached the highest level recorded, at almost 902,000, while registered unemployment was down in August and September.

Companies are increasingly hiring foreign workers, which is easing wage pressure. The annual growth in gross wage, which stood at 7.1% in July, is mainly a result of pay raises in the public sector, Banka Slovenije says in the October issue of Economic and Financial Trends.

Inflation reached 2.7% in September mainly due to the rise in energy prices. The prices of other energy goods are growing the fastest since 2008 due to the high prices of raw materials and non-regular supply of intermediate goods.

After some restrictive measures were lifted in the spring, services too became costlier.

The country’s public finance situation in the first six months of the year was better than in the same period last year due to rapid economic growth. State revenue increased in the second quarter even faster than in the first, while the growth of expenditure slowed down, so deficit decreased as well.

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