According to the Statistics Office, GDP in the second quarter of 2014, adjusted for season and working days, grew by 0.7% compared to the previous quarter, and by 3.1% compared to the third quarter of 2013.

"The positive trends are continuing in the third quarter as well. With the same growth rate, i.e. 3.2%, in the fourth quarter of the year Slovenia would reach economic growth of approximately 2.8%," explained Anže Podnar from the Statistics Office's national accounts department, and continued that it was not a prediction, but a flash estimate.

Export was again the driving force of growth; it has been growing for eight consecutive quarters, this time by 6.8%, mainly on account of increased export of goods, which expanded by 8.2%, while the import grew as well by 5.5%, mainly on account of substantial increase of import of motor vehicles..

Domestic consumption expanded by 1.9, mostly due to high growth of gross fixed capital formation which increased by 7.2%, with investments into buildings and facilities leading by 14% increase.

Cars are hot merchandise
The final use has increased as well, by 0.6%. Private consumption in this quarter grew by 0.8%, just as the use of durable products which in this quarter increased by 9.5%, mainly on account of high increase of purchased cars (14%). The purchases of other goods decreased by 0.3%.

From the beginning of the crises the investment into residential buildings have been decreasing, and in this quarter they diminished by 3.8%. The investments into equipment and machines dropped, their value was smaller by 2.7%.

The expenditures of the state, after a longer period of abatement, this time remained on the same level as a year ago, mainly on account of increase of costs for goods and services (these increased by 3.3%). In the third quarter also the total value added of the economy increased by 3.7%, which is the largest increase since the beginning of crisis.

IMAD: Consumption of households is increasing
The continuation of the economic growth was, as estimated by IMAD (the Office for Macroeconomic Analyses and Development), mainly the consequence of the expanded growth of import, and the contribution of the domestic consumption was positive as well. They added that the strengthening of consumption of households was mostly influenced by the improved conditions at the labour market, and the mood of the consumers. However Slovenia is still among the countries which fall behind the pre-crisis level.

"Further strengthening of intra-annual growth of export is the consequence of larger export into countries members of the EU. Besides the weak recuperation of the economic activities in our main trade partners can be connected with the improvement of export competitiveness, and some larger export transactions in the last period," IMAD explained.

Chamber of Commerce and Industry of Slovenia: The growth won't be so sharp any more
The high economic growth in the third quarter of this year is encouraging, yet it will be difficult to preserve the similar rate of growth of GDP, warn the Chamber of Commerce and Industry of Slovenia (CCIS), and the Manager Association. The Chamber of Craft of Slovenia is placing the bet on further strengthening of the domestic consumption.

Similarly as IMAD, CCIS claim that the high growth reflects good results of export companies with high added value, greater optimism of consumers, temporary growth of investments, and stopping of saving by the state. Yet the growth is expected to slow down in future. "The investments which recorded the growth of 7% were supported by European projects, where deceleration is already being noticed, and we have no hope for such growth in the next quarter," warns the Chamber of Commerce.

Thank you, Croatia
A great role in strengthening of the Slovenian GDP was played by the investments of Croatian companies in Slovenia, estimated the Slovenian Ambassador in Croatia Vojko Volk in his conversation with the Lider business weekly. He said that in the last years the Croatian investments in Slovenia approached one billion euros, and constituted a large part of the Slovenian GDP.

He reminded of the investments of the Atlantic group, Agrokor, and LRH Liburnija, or Cavtat Hotels, and of the interest of the Adris group from Rovinj for investments into insurance market. "The Croatians are literally competing who will invest more. It is a good thing, as it means that Slovenia has a favourable climate for investors," Volk said for today's issue of Lider.
He added that the Slovenian experiences with investments in Coratia are very positive. "They used to be large, but in the last years they have diminished. In 2013 there were hardly any foreign investments. Slovenia only followed the trends," he said.

Andrej Čebokli
Translated by G. K.