Ljubljana, 30 November (STA) - Slovenia's gross domestic product (GDP) expanded at an annual rate of 4.8% in the third quarter of the year from 4% in the previous quarter, as a surge in investments offset a significant decline in exports. Compared to the previous quarter, the economy grew by a seasonally adjusted 1.3%.
Investments surged by 13.4% from 7.2% in the previous quarter, offsetting a pronounced slowing of export growth, which was at 5.7% compared to 9.1% in April-June. The growth of domestic consumption held steady at 3.5%.
The high investment growth was the result of brisk growth of gross fixed capital formation as well as changes in stocks. It contributed 0.5 of a percentage point to GDP growth, mostly as a result of an almost 20% spike in construction investments.
Household final consumption expenditure remained at the same level as in the third quarter of 2017.
Despite the slowdown in exports, however, external trade had a positive impact on economic growth since imports declined in lockstep with exports. The external trade surplus contributed 1.7 percentage points to the economic growth.
Total employment was at 1,022,053 persons and increased by 2.8% year-on-year.
The high rate of growth in the third quarter was expected given the current position in the economic cycle, but a slowdown is projected in the final quarter and in 2019 as the impact of a contraction in global trade, already evident in export figures, becomes more pronounced.
Several forecasters have also warned that the Slovenian economy is close to capacity, with nearly full employment gradually exerting a drag on growth.