A second quarter of positive q-o-q growth
Overview:
Despite strong economic fundamentals – relatively modest economic imbalances and a stong export base – Slovenia has been hard hit by the global economic crisis. GDP has contracted sharply as world trade has collapsed and the fiscal balance has deteriorated significantly both for cyclical reasons and due to the adoption of large fiscal stimulus measures. Nevertheless, a strong starting position (membership of the Euro zone, a relatively healthy banking system and low public debt) have allowed Slovenia to weather this temporary set-back and start to recover along with its main trading partner: the EU. Indeed, following two consecutive quarters of sharp q-o-q GDP contractions the economy recorded positive growth in both Q2 and Q3. The current account deficit is falling and inflation is close to zero.