Relatively favourable economic trends continue in the first quarter of 2024

At the beginning of 2024, economic activity in Slovenia remained relatively favourable and its year-on-year growth was above the euro area average. It continued to be driven by domestic demand, while net trade also contributed positively to GDP growth. Based on the trends in the first quarter, the economic outlook also remains solid for the remainder of 2024.

In the first quarter of 2024, economic activity remained unchanged at the quarterly level, but it was up 2.1% in year-on-year terms. Year-on-year GDP growth in Slovenia was above the euro area average, which, according to initial estimates, stood at 0.4%.

At the beginning of the year, economic activity continued to be strongly driven by household consumption (0.9%) stimulated by historically high employment and pay increases that exceed inflation. In addition to private consumption, government spending and gross fixed capital formation also increased by a further 5.1% and 0.6% respectively in year-on-year terms. The trade surplus (0.2 percentage points) also contributed to GDP growth. The decline in both imports and exports in real terms eased further, with the decrease in exports, compared to the same period last year, remaining smaller than that on the import side. With further recovery at the quarterly level, year-on-year growth in value added in industry increased to 1.8%, while robust domestic consumption was reflected in a year-on-year increase in services.

The relatively favourable economic trends in the first quarter and an improved economic climate at the beginning of the second quarter strengthen the outlook for this year's economic growth. Inflation also continues to ease, which, together with the data published today, Banka Slovenije will take into account in preparing the new forecasts, due to be published in June.