Slovenia's economy showed signs of recovery in the second quarter, with Gross Domestic Product (GDP) growing by 0.7 percent.
Slovenia's economy showed signs of recovery in the second quarter, with Gross Domestic Product (GDP) growing by 0.7 percent, according to the Statistical Office. This follows a contraction of 0.6 percent in the first quarter, which was largely attributed to a decline in exports. Despite exports continuing to decrease by 0.8 percent in the second quarter, domestic consumption saw a significant boost, jumping by 3.6 percent. This surge in consumption is largely driven by increased wages in the public sector, a trend that has been notable since the left-oriented government led by Robert Golob took office in 2022. The government has also implemented new taxes and contributions. The recent long-term care contribution, for instance, has raised labour costs by 1 percent, with employees contributing an additional 1 percent. Since 2022 Slovenia has lost five places in the IMD's global competitiveness ranking and is currently in 46th place.
