Balance of payments – indicator of the state of the economy and a guide for policymakers

The balance of payments is an important macroeconomic indicator of the state of the Slovenian economy. At the same time it is an indicator that can help shape economic policies, especially in terms of promoting competition and boosting productivity. The balance of payments reflects day to day developments in the international environment, including those we have witnessed in recent years: the epidemic, the disruption of trade flows due to war, the energy crisis. The latest Banka Slovenije data show that the balance of payments flows strengthened in 2022, and after ten years of surplus Slovenia’s current account balance of payments has recorded a deficit.

At the event, we highlighted the importance, reasons and consequences of shifts in the balance of payments and addressed questions such as:

• What has had the biggest influence on flows in specific parts of the balance of payments?
• How are current economic conditions reflected in them?
• How these data reflect the competitiveness of Slovenia’s economy?
• How can the financial system respond?
• And how can these data benefit those in charge of economic policy?

These questions were addressed at the panel discussion entitled Balance of payments – indicator of the state of the economy and a guide for policymakers at Banka Slovenije.

The opening remarks were given by Banka Slovenije Governor Boštjan Vasle, the latest data on the balance of payments was presented by Irena Drmaž, director of Banka Slovenije’s Financial Statistics Department, who also moderated the discussion.

The main part of the event was a discussion involving the participation of:

• Maja Bednaš, Director of the Institute of Macroeconomic Analysis and Development
• Črt Kostevc, Head of the Department of International Economics and Business at the School of Economics and Business of the University of Ljubljana
• Tomaž Smrekar, Director General of the Statistical Office of the Republic of Slovenia and
• Anita Stojčevska, CEO of SKB banka.

The recording of the panel discussion is available here (in Slovene language).