Economy Expands at Record 6.1% in 2007

Ljubljana, 10 March

Driven by exports, the Slovenian economy expanded at an annual rate of 4.7% in the last quarter of 2007, while GDP growth for the whole of last year is estimated to have reached 6.1%, the highest rate since 1991 independence, the Statistical Office said on Monday.

Gross domestic product (GDP) at current prices amounted to EUR 33,542m (up 10.2% on 2006), or EUR 16,616 per capita (up 9.6% on 2006).
"This was a year of exceptional achievements and record results," Karmen Hren, who is responsible for national accounts at the office, told reporters in Ljubljana.
She said the period of stable and robust growth began with Slovenia's accession to the EU in 2004. Growth peaked at 7.2% in the first quarter of 2007, but then slowed down to 4.7% in the last quarter, which Hren said was the level before 2006.
Exports remained the most important factor for the GDP growth for the fourth year in a row. They increased by 13% in 2007 on 2006, contributing 8.8 percentage points to the GDP growth, the Statistics Office said.
Exports showed the same trends as other categories: in the first three quarters their growth was very high but the increase was much more modest in Q4. Imports increased slightly more than exports (14.1%).
Among the expenditure categories, the highest growth was recorded in gross fixed capital formation (17.2% on 2006). The growth was the highest in the first half of the year but it was cut in half in Q4.
The gross capital formation in buildings and structures increased by 20.8% and that in transport equipment by 24.7%. Gross capital formation in residential buildings increased by a strong 20% in all quarters of 2007.
Final consumption expenditure increased by 2.7%, down on 4.1% in 2006; while general government expenditure increased by 1.4% (4.4% in 2006), that for households was 3.1% higher than in 2006.
Value added increased the most in construction (18.7%). Extremely high growth started in Q2 of 2006 and continued for five consecutive quarters at the rate of 17-29%. In Q4 of 2007 the increase was just 8%, which is 8.6 percentage points down on the quarter before.
Value added in manufacturing went up by 8.3%, which is comparable to the growth in 2006. High growth rates were also registered in financial services (12.1%), retail (7.6%) and transport (6.2%).
Favourable economic conditions also had a positive effect on employment growth. "Last year the workforce was the biggest after 1991, while the increase it its numbers was the highest," Hren said.
The workforce numbered 959,600, or 2.7% more than in 2006. The slow-down at the end of the year did not translate in a slow-down in hiring, which grew most in Q4 (3%).
Employment increased the most in construction (10.8%), transport (6.4%) and business services (6.3%). For the first time after 2001 employment increased also in manufacturing (0.7%).

Economy Expands at Record 6.1% in 2007

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