No. 7, Vol. XXII, 2016 Slovenian Economic Mirror ISSN 1318-3826 (print) ISSN 1581-1026 (pdf ) No. 7 / Vol. XXII / 2016 Publisher: IMAD, Ljubljana, Gregorčičeva 27 Responsible Person: Boštjan Vasle, MSc, Director Editor in Chief: Tina Nenadič, MSc Authors of Current Economic Trends (listed alphabetically): Urška Brodar, Jure Brložnik, Lejla Fajić, Janez Dodič, Marjan Hafner, MSc, Katarina Ivas, MSc, Slavica Jurančič, Mojca Koprivnikar Šušteršič, Janez Kušar, MSc, Jože Markič, PhD, Helena Mervic, Tina Nenadič, MSc, Mitja Perko, MSc, Jure Povšnar, Ana T. Selan, MSc, Branka Tavčar, Dragica Šuc, MSc, Ana Vidrih, MSc. Authors of Selected Topics: Matevž Hribernik, Msc ( WEF Global Competitiveness Report 2016–2017; The Doing Business 2017 report by the World Bank), Mateja Kovač, Msc (Forestry in 2015), Ana Murn, PhD (Subsidies 2010–2015), Janja Pečar (Economic picture of the regions based on selected economic indicators), Valerija Korošec, PhD (Life satisfaction, spring 2016) Editorial Board: Marijana Bednaš, MSc, Aleš Delakorda, MSc, Lejla Fajić, Alenka Kajzer, PhD, Rotija Kmet Zupančič, MSc, Janez Kušar, MSc, Boštjan Vasle, MSc Translator: Marija Kavčič Data Preparation and Graphs: Bibijana Cirman Naglič Concept and Design: Katja Korinšek, Pristop DTP: Bibijana Cirman Naglič Print: Demat d.o.o. Circulation: 80 copies © The contents of this publication may be reproduced in whole or in part provided that the source is acknowledged. Contents In the spotlight................................................................................................................................................................ 3 Current economic trends .............................................................................................................................................. 5 International environment............................................................................................................................................... 7 Economic developments in Slovenia ............................................................................................................................. 8 Labour market .................................................................................................................................................................. 13 Prices .................................................................................................................................................................................. 15 Balance of payments ....................................................................................................................................................... 18 Financial markets ............................................................................................................................................................. 19 Public finance.................................................................................................................................................................... 21 Selected topics WEF Global Competitiveness Report 2016–2017 ...................................................................................................... 25 The Doing Business 2017 report by the World Bank ................................................................................................. 26 Forestry in 2015 ................................................................................................................................................................ 27 Subsidies 2010–2015....................................................................................................................................................... 28 Economic picture of the regions based on selected economic indicators............................................................ 30 Life satisfaction, spring 2016 ......................................................................................................................................... 32 Statistical appendix ..................................................................................................................................................... 35 The Economic Mirror is prepared based on statistical data available by 9th November 2016. On 1 January 2008, the new classification of activities of business entities NACE Rev. 2, which replaced NACE Rev. 1.1, came into force in all EU Member States. In the Republic of Slovenia the national version of the standard classification, SKD 2008, took effect. It includes the entire European classification of activities but also adds some national subclasses. All analyses in the Slovenian Economic Mirror are based on SKD 2008, except when the previous classification, SKD 2002, is explicitly referred to. For more information on the introduction of the new classification see the SURS website http://www.stat.si/eng/skd_nace_2008.asp. All current comparisons (at the monthly, quarterly levels) in the Slovenian Economic Mirror are made on the basis of seasonally adjusted data, while year-on-year comparisons are based on original data. Unless otherwise indicated, all seasonally adjusted data for Slovenia are calculations by IMAD. In the spotlight Economic growth in the euro area continued in the third quarter of 2016; moderate economic growth is also expected for the last quarter of the year. According to Eurostat’s estimate for the third quarter, GDP in the euro area grew by 0.3% (seasonally adjusted) and was 1.6% higher than in the same quarter of 2015. The values of the Economic Sentiment Indicator (ESI) and the composite Purchasing Managers Index (PMI) suggest a further strengthening of economic activity in the remainder of the year. In its autumn forecast, the European Commission expects 1.7% GDP growth in the euro area for this year. Its forecasts for next year’s growth have been lowered slightly (to 1.5%) owing to the uncertain consequences of Brexit. During the summer months positive developments also continued in Slovenia; the prospects for the last quarter are also favourable. Real merchandise exports and manufacturing output have remained high. Activity in construction has stayed almost unchanged after the increase in the second quarter, albeit significantly lower than in the same period of 2015. Turnover is steadily rising across most market services. With the improvement in labour market conditions, turnover expands particularly in some segments of trade and in tourism-related services, where its growth is also underpinned by higher spending by foreign tourists. Labour market conditions improved further; employment growth is expected to continue. The number of persons employed increased further in August. In the first eight months, all activities but construction recorded higher year-on-year growth than one year earlier. The number of registered unemployed dropped further, 97,263 persons being registered as unemployed at the end of October, which is 9.5% less than one year earlier. Average gross earnings are steadily rising this year. In the first eight months, the private and the public sector saw much higher year-on-year growth than in the same period of 2015. After almost two years of deflation, Slovenia has recorded consumer price growth in the last two months. Year­on-year inflation stood at 0.6% in October. The higher year-on-year growth is mainly due to the smaller and smaller energy price declines and stronger food price growth. Prices of semi-durable goods are also up year on year again. Prices of services remain higher relative to the same period last year, while prices of durable goods are lower. The price and cost competitiveness of the Slovenian economy remain close to the favourable levels seen in 2015. The appreciation of the euro had a smaller impact on Slovenia than on most other euro area countries owing to the geographic structure of Slovenia’s trade. Moreover, price competitiveness losses were also mitigated by declining relative consumer prices. The falls in unit labour costs were similar to those in Slovenia’s trading partners, but slightly smaller than for the euro area as a whole. Slovenia’s market shares of world and EU merchandise exports increased further. Slovenia has advanced on the scales of international competitiveness this year. According to the WEF’s latest report, its competitiveness has improved as a consequence of more favourable macroeconomic indicators and more positive business executives’ perceptions regarding the ease of doing business in Slovenia. Slovenia has also improved its rankings in other global competitiveness surveys (for example, IMD, WB Governance Indicators), but remains one of the countries that rank lower than before the crisis. According to the latest report on the ease of doing business by the World Bank, Slovenia continues to rank relatively high. The situation in the banking sector continues to improve; the quality of banks’ assets increased noticeably during the summer months. In the third quarter, the improvement of banks’ asset quality accelerated owing to the sale of a portion of non-performing claims and higher write-offs. Since the beginning of the banking system restructuring, Slovenia has reduced the share of non-performing claims the most of all EU countries that faced similar problems at the onset of the crisis. The structure of sources of funding for banks is changing as well: while banks’ reliance on foreign bank financing continues to decrease gradually, non-banking sector deposits are rising. They already account for as much as two-thirds of the banking system’s total assets, which is almost half more than in 2008. Overnight deposits predominate, being almost one-fifth higher year on year. Nevertheless, the volume of loans to domestic non-banking sectors contracted further. Its decline (of 6.3% in the past year) is a consequence of further corporate and NFI deleveraging, while households are borrowing in the form of housing and consumer loans. Weak lending to the corporate sector is estimated to be due to several factors: it is related to loan supply, with banks remaining cautious amid the still high share of bad loans, as well as to demand side factors, such as the persistent lack of high-quality projects and more and more companies making use of non-bank sources of finance. The general government deficit on a cash basis was down EUR 248.8 million year on year in the first eight months of 2016. The year-on-year increase in general government revenue was largely due to higher revenues related to the improving labour market conditions. General government expenditure was lower than in the same period last year mainly as a result of lower investment (during the transition to the new financial perspective). Most of the other expenditures increased, particularly those related to the easing of some austerity measures. Favourable economic developments in Slovenia and the euro In the first eight months of 2016, the number of employed persons in area continued over the summer months. Slovenia rose more than one year before; earnings are also higher. Slovenia - Industrial production in manufacturing Wages 2016 Persons in employment 2016 Slovenia - Construction output Wages 2015 Persons in employment 2015 4 Slovenia - Turnover in retail trade Euro area - Industrial production in manufacturing Euro area - Construction output 3 Year-on-year growth Jan–Aug, in % Euro area - Turnover in retail trade 120 110 Seasonally adjusted index 2008=100,3-month moving averages 2 100 90 80 1 0 70 60 50 40 -1 -2 Manufacturing Construction 30 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Source: Eurostat, SURS; calculations by IMAD. Source: SURS; calculations by IMAD The price and cost competitiveness of the Slovenian economy Slovenia's market shares of world and EU merchandise exports remain close to last year’s favourable levels. increased. WORLD EU28 NEER REER, HICP rel. HICP 15 REER, ULC rel. ULC 112 10 109 Year-on-year growth, in % -5 97 -10 94 -15 *Growth in the REER (deflated by the HICP or the ULC respectively) denotes a deterioration in (price or cost) Source: ECB; calculations by IMAD. Source: SURS, Eurostat, UN; calculations by IMAD. competitiveness and vice versa. The quality of banks' assets improved significantly during the summer The general government deficit continues to decline. months owing to the sale of non-performing claims and higher write-offs. Volume of non-performing claims (right axis) General government balance Primary general government balance 5 Index 2007=100 106 103 0 100 Share of non-performing claims 500 16 2,000 14 1,500 0 Year-on-year change in EUR m In EUR m -500 -1,000 12 1,000 10 500 In % 0 6 -500 4 -1,000 -1,500 2 -1,500 -2,000 2011 2012 2013 2014 2015 Jan-Aug Jan-Aug 2015 2016 Source: BoS. Source: MF, Bulletin of Government Finance; calculations by IMAD. 0 -2,000 current economic trends International environment Figure 1: Contributions to economic growth in the euro area Government consumption Economic activity in the euro area is increasing; moderate Gross fixed capital formation Private consumption Changes in inventories economic growth is also expected for the remainder of the Net exports GDP (right axis) year. According to Eurostat’s preliminary flash estimate for the third quarter, GDP in the euro area grew by 0.3% (seasonally adjusted) and was 1.6% higher than in the same quarter of 2015. In its autumn forecast, the European Commission expects a continuation of moderate economic growth in the remainder of the year; this is also indicated by the Economic Sentiment Indicator (ESI), which reached the highest value this year in October, and the composite Purchasing Managers Index (PMI). The European Commission otherwise predicts 1.7% GDP growth in the euro area for this year (1.6% in the spring), while in 2017, GDP will be lower than projected primarily owing to the expected consequences of Brexit (1.5%; compared with 1.8% in the spring). Its growth will continue to be driven by private consumption and investment. Figure 2: ECB Euro Area Bank Lending Survey Credit standards for loans to enterprises over the past 3-m (left axis) Credit standards for loans to enterprises over the next 3-m (left axis) Demand for loans to enterprises over the past 3-m (right axis) Demand for loans to enterprises over the next 3-m (right axis) Difference between the numbers of banks that improved/tightened their credit standards (%) 40 40 -10 -20 -30 -40 Difference between the number of banks thatexpect corporate loan demand to increase andthose expecting it to decline (%) 30 30 Credit standards for loans to enterprises in the euro area did not ease further in the third quarter and banks expect their tightening in the future. After two years of easing, credit standards for enterprises remained unchanged, according to the ECB survey. Credit standards for households continue to ease, the main factor being greater competition between the banks. With low interest rates, loan demand increases further across all loan categories. 20 20 10 10 0 0 -10 -20 -30 -40 Q1 11Q1 12Q1 13Q1 14Q1 15Q1 16 Source: ECB. Note: A positive figure indicates an improvement. Table 1: Brent oil prices, the USD/EUR exchange rate and EURIBOR average change, in %* 2015 IX 16 X 16 X 16/IX 16 X 16/X 15 I-X 16/I-X 15 Brent USD, per barrel 52.35 46.57 49.52 6.3 2.3 -22.2 Brent EUR, per barrel 48.25 42.69 47.36 10.9 7.9 -20.6 EUR/USD 1.110 1.121 1.103 -1.7 -1.9 -0.1 3-month EURIBOR, in % -0.020 -0.302 -0.309 -0.7 -25.5 -25.2 Source: EIA, ECB, EMMI Euribor; calculations by IMAD. Note: * in Euribor change in basis points. Jan 11Jul 11Jan 12SEmployment ProProductionFigure 6: Jul 12Jan 13Jul 13Jan 14Jul 14ource: BoS; calculations by IMAD. duction (left axis) No. of peJan 15 volume and emplors Jul 15Jan 16Jul 16 0 500 1,000 1,500 2,000 2,500 3,000 yment in the ons (right axis) 9 Figure 5: Trade in services – nominal Exports of services Imports of services 550 of employed persons in manufacturing rose by around 5,800 (3.2%) year on year. The largest contribution to employment growth was made by some more export-oriented industries, where production increased the most relative to the same period last year (the rubber and metal industries, ICT and electrical equipment manufacturing).3 average Year-on-year,Jan–Aug 2016, % Year-on-year, Jan-Aug 2016, number -500 -5 -10 Leather ind. Mfr. of transport equip.*Mfr. of oth. non-metal. pr.Chem. and pharmac. ind. Mfr. of machin. and equip.Food-processing ind. Source: SURS; calculations by IMAD. Paper ind., printingWood processing ind.Mfr. of textilesMfr. of rubber and plastic Metal ind.Furniture ind. Repair and installationManuf. of ICT and el. equip. In EUR m, seasonally adjusted, 3-m moving Note. * Employment in C 30 IMAD estimate. Figure 7: Value of construction output Total Residential buildings 10 5 0 -1,500 -1,000 After having increased in the second quarter, the value of construction output remained roughly unchanged in the summer. However, owing to a sharp decline around the turn of the year, construction activity is noticeably lower than in 2015. Only the construction of residential buildings, having recovered strongly since mid-2015, is higher than last year. skilled workers. In the first eight months, the number more and more enterprises also facing a shortage of remains the main limiting factor to production, with data, most enterprises surveyed expect further growth in demand and production in the last quarter of the year. Insufficient demand (domestic, in particular) otherwise year in most industries. According to business tendency Production volume in manufacturing remains high. In the first eight months, production volume was up year on 500 450 400 350 300 250 Growth in nominal exports and imports of services continues.2 The year-on-year growth of exports in the first eight months (6.1%) was largely underpinned by higher exports of transport and construction services, while the year-on-year growth of imports (3.6%) arose primarily from increased imports of technical, trade-related business services and higher resident spending abroad (imports of travel). Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 2 According to the balance of payments statistics. 3 The strong growth in some activities was also attributable to the reclassification of enterprises from the transport equipment Source: SURS; calculations by IMAD. manufacturing sector, where employment declined. Figure 8: Turnover in the trade sector Retail trade, real (left axis) Wholesale trade, nom. (left axis) 140 In distributive trades, the sales of vehicles and non-food 80 Source: SURS; calculations by IMAD. Figure 9: Nominal turnover in market services (other than trade) Total Transportation and storage (H) Information and communication activities (J) Professional and technical activities (M) Administrative and support service activities (N) Source: SURS; calculations by IMAD. Figure 10: Road and rail freight transport in Q2 2016 The volume of road freight transport has stagnated Railway Road - exports and imports in the last quarters. Only the journeys carried out by Road - abroad Road - national Road Slovenian road hauliers entirely abroad have been rising more notably, which is related to the favourable foreign demand and the liberalisation of the transport market, as hauliers are also increasingly competing for business in other countries. Foreign hauliers have made a greater contribution to the increasing freight transport on Slovenian roads than domestic hauliers.5 Rail freight transport has retained its level despite the decline in export orders in the first half of the year. 4 After last year’s strong growth, the sales of new goods motor vehicles and goods trailing vehicles continue to increase this year. The sales of new passenger cars to individuals are also rising further, while the sales to legal entities are lower year on year, after three years of growth. 5 In Q2 2016 the number of passages of (domestic and foreign) hauliers Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Seasonally adjusted index 2008=100, 3-month moving average 110 105 100 sector, transportation, is weak owing to the decline in 95 export revenue from land transport. In the first eight 90 months, turnover was up year-on-year in all market 85 services. 80 75 and food service activities. Turnover growth in the largest Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 92 104 116 128 Seasonally adjusted index 2008=100,3-month moving average behaviour; this is the only sector where turnover has not risen year on year. Reflecting further growth in the sales of new passenger and goods motor vehicles,4 motor vehicle sales recorded the highest year-on-year growth (of more than one-fifth) in the first eight months. steadily since the beginning of the year, in recent months not only owing to the sales of non-food products, but also the rising sales of automotive fuels. Food product sales have remained low amid changes in consumer products continue to grow. Retail trade has been increasing Nominal turnover in market services is gradually rising. tourists, turnover expands the most in accommodation With increased spending by both domestic and foreign Source: SURS; calculations by IMAD. the territory of Slovenia declined by 3.7% (outside Slovenia it increased by 13.9%, according to SURS). through toll stations of Slovenian motorways rose by 7.1% year on year Q1 11 Q1 12 Q1 13 Q1 14 Q1 15 Q1 16 (according to DARS); the distance of journeys performed by domestic hauliers in the national territory and those at least pertly connected to Net wage bill Sale of food Sale of non-food products Number Source: SURS; calculations by IMAD. Note: * Owing to methodological changes, the consumer confidence data published since January 2016 are not comparable with previous data. Average no. of legal entities with outstanding matured obligations (left axis) Average daily amount of outstanding matured liabilities, in EUR m (right axis) 8,000 800 7,000 700 6,000 600 5,000 500 Source: SURS; calculations by IMAD. Figure 12: Business tendency Economic sentiment Manufacturing Retail trade Service activities Construction Consumers 3,000 300 4,000 400 Economic sentiment has been improving since mid-year. Confidence has increased the most in construction; in other sectors it has remained high, similar to the first half of the year. Seasonally adjusted index 2008=100, 3-month moving average Jan 08 105 100 95 90 85 80 Jan 11Jul 08Jul 11Jan 09Jan 12 Jul 09 Jan 10Jul 12Jul 10Jan 13Jan 11 Jul 11Jul 13Jan 12Jan 14Jul 12Jul 14Jan 13Jan 15 Jul 13 Jan 14Jul 15Jul 14Jan 16In EUR m billion in the period since April 2011.9 Solvency is improving. The number of non-payers and the amount of outstanding liabilities of legal persons and sole proprietors were lower again year on year in the third quarter. Payment delays shortened, but long-term outstanding liabilities8 remained high. They accounted for 73% of total outstanding liabilities in legal persons and 83% in sole proprietors. Including September’s round of compulsory and voluntary set-offs, the mutual indebtedness of business entities declined by EUR 2.9 Household consumption is rebounding with the recovery of labour market conditions and rising disposable income. August recorded a further increase in the consumption of durable goods, where purchases of passenger vehicles increased the most.6 Purchases of some semi-durables also rose slightly. We estimate that households also spent more on services related to accommodation, food, recreation and culture.7 Consumer confidence has also improved considerably since the middle of the year. 6 The number of first passenger car registrations by individuals was up 2,000 200 12.5% year on year in the first eight months. 7 In the first eight months, the number of domestic tourist overnight stays 1,000 100 was up 1.4% year on year. Household spending on private travel abroad was also significantly higher (by 6.7%). 0 Source: AJPES. which took effect on 28 July 2012. Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 Q1 15 Q1 16 8 Liabilities that are more than one year overdue. 9 ZPreZP-1 (Official Gazette of the RS, No. 57/2012, from 27 July 2012), Bankruptcy proceedings initiated against legal entities (left axis) 70 60 The number of bankruptcy proceedings initiated against legal entities and sole proprietors and the number of personal bankruptcy filings declined in the last two 50 quarters. The most bankruptcy proceedings against 40 Number legal entities and sole proprietors were again filed in distributive trades and construction, in sole proprietors also in accommodation and food service activities. 30 Although the number of personal bankruptcy filings was 20 lower year on year (by 12%), it still totalled 2,703 in the first nine months. The amounts of reported claims were 10 a third lower. 0 Q1 09Q1 10Q1 11Q1 12Q1 13Q1 14Q1 15Q1 16 Source: AJPES – Business Register of Slovenia. Table 5: Indicators of price and cost competitiveness Year-on-year growth, in % 2014 2015 q2 15 q3 15 q4 15 q1 16 q2 16 Effective exchange rate1 Nominal 0.3 -2.8 -3.7 -2.4 -1.9 0.5 1.4 Real, deflator HICP -0.1 -3.8 -4.8 -3.4 -3.1 -0.7 0.8 Real, deflator ULC -1.7 -3.1 -3.5 -2.4 -2.1 0.7 0.9 Unit labour costs, ecnomy and components Nominal unit labour costs -1.3 0.3 0.7 0.1 0.4 1.8 0.3 Compensation of employees per employee, nominal 1.3 1.4 1.6 1.0 2.0 2.6 1.0 Labour productivity, real 2.7 1.2 0.9 0.9 1.7 0.8 0.7 Real unit labour costs -2.1 -0.7 0.1 -0.4 -1.1 0.2 -0.4 Labour productivity, nominal 3.5 2.2 1.5 1.4 3.2 2.4 1.4 Year-on-year growth, in % Source: SURS; calculations by IMAD. Note: 1 Against 37 trading partners, according to ECB data. Figure 23: Change in market shares in Slovenia’s main trading partners14 Slovenia’s merchandise market shares of world and 2015 (left axis) EU exports continued to increase in the first six months. Jan–Jun 2016 (left axis) The stronger growth in the EU was largely the result 30 of increased market shares in Germany, Croatia and Italy, coupled with renewed stronger growth on most Share in exports 2015 (right axis)* 15 10 20 relatively less important EU markets.15 Among the most important products in the manufacturing sector,16 Slovenia increased its EU market shares of medical and 5 10 Share in % pharmaceutical products, rubber products, paper and 0 0 paperboard, non-ferrous metals, machinery specialised -5 -10 for particular industries and miscellaneous manufactured articles. Of the most important export markets outside -10 -20 the EU, the market shares in Bosnia and Herzegovina and Serbia increased the most.17 The strong market share growth on the world market was not only due to the base effect, but also to more modest growth in import demand from non-EU markets (North and South American and -30 WORLDEU 28Partners 12DEITFRATPLHUCZUKHRRSBARUEU 18**EX-YU*** Source: SURS, Eurostat, WIIW, WTO, UN; calculations by IMAD. Note: Asian markets). Similar to 2013–2014, it was one of the *Merchandise exports=100; ** other EU markets; ***excluding Kosovo. highest in the EU Member States. 14 With a 2% or greater share in total merchandise exports in 2013–2015 as a whole. 15 In the Netherlands, Spain, Denmark, Greece, Ireland, Portugal, Luxembourg, Sweden, Slovakia, Estonia, Latvia, Malta, Romania and Bulgaria. 16 With a 2% or greater share in total merchandise exports in the EU in 2013–2015 as a whole. 17 And also in the US and Switzerland. 12-month moving sum, in EUR m 8,000 6,000 4,000 2,000 0 -2,000 -4,000 -6,000 -8,000 Jan 11 Jul 11 Jan 12 Jul 12 Balance of payments Merchandise trade Trade in services Primary income Secondary income Current account The current account surplus is the highest thus far; in the twelve months to August, it totalled 6.7% of GDP. In the first eight months of the year, its year-on-year increase was mainly underpinned by the surplus in international trade in goods and services, which reflects export competitiveness, the growth of export markets and weak domestic consumption. The deficit in primary income was down year on year largely owing to the lower estimates of reinvested earnings of foreign direct investors.18 Net payments of interest on external debt were also lower, which is a consequence of further bank and government deleveraging abroad. The deficit of secondary income is narrowing primarily as a result of the lower payments into Source: BoS; calculations by IMAD. Table 6: Balance of payments I-VIII 2016, in EUR m Inflows Outflows Balance Balance, I-VIII 15 Current account 22,031.9 20,109.5 1,922.4 1,256.0 Goods 16,278.2 15,090.4 1,187.8 922.9 Services 4,203.4 2,713.9 1,489.5 1,340.4 Primary income 1,108.0 1,512.0 -404.1 -623.7 Secondary income 442.3 793.2 -350.9 -383.5 Capital account 201.4 377.1 -175.6 201.3 Financial account -1,518.1 -425.8 1,092.3 1,281.7 Direct investment 974.2 169.3 -804.9 -518.8 Portfolio investment -1,016.2 981.1 1,997.3 1,177.9 Other investment -1,424.9 -1,473.8 -48.9 616.6 Net errors and omissions 0.0 -654.4 -654.4 -175.5 Source: BoS. Note: The methodology of the Slovenian Balance of Payments and International Investment Position statistics follows the recommendations in the sixth edition of the Balance of Payments and International Investment Position Manual published by the International Monetary Fund. On the current and capital accounts, the term »inflows” means total receipts and the term “outflows” means total expenditures; “balance” is the difference between inflows and outflows. On the financial account, “outflows” mean assets, while “inflows” mean liabilities abroad; “balance” is the difference between outflows and inflows. In financial inflows and outflows, the increase is recorded with a plus sign and the decrease with a minus sign. Figure 25: Financial transactions of the balance of payments The net financing of the rest of the world continues. In Portfolio investment the first eight months, this was a consequence of a net Financial derivatives Direct investment Other investment outflow of portfolio investment, while other investment Financial transactions 12,000 and direct investment recorded net inflows. The Bank of 10,000 Slovenia increased investment in foreign debt securities, Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 in line with the public sector purchase programme (PSPP). Because of lower returns, the government19 and commercial banks reduced their assets in foreign accounts and continued to repay external debts.20 The year-on-year increase in the net inflow of direct investment was mainly due to inter-company loans of foreign direct investors. 18 Data on reinvested earnings in 2015 are from companies’ annual accounts. Reinvested earnings in 2016 are estimated based on the movements of business results in the previous three years and the current payments of profits in 2016. 19 In the first eight months of 2015, the government placed EUR 2,265 the EU budget. Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 -10,000 Source: BoS; calculations by IMAD. million. deposits tied for more than 6 months. 20 In the first eight months of 2015, bank foreign liabilities in the segment of other investment declined by EUR 951.6 million; this year by EUR 511.5 million into foreign bank accounts and recorded positive returns on Financial markets Figure 26: Changes in the volume of loans to domestic non-banking sectors Households Enterprises and NFIs Government Total 1,000 Year-on-year changes in EUR m 0 The volume of loans to domestic non-banking sectors -500 continues to contract. Its decline is a consequence of further corporate and NFI deleveraging, while households -1,000 are borrowing in the form of housing and consumer loans. -1,500 -2,000 -2,500 Source: BoS; calculations by IMAD. Note: Excluding the impact of the transfer to the BAMC. 50 The quality of banks’ assets started to improve at a faster 40 pace in the first two months of the third quarter. The acceleration was attributable to the sale of a portion of Figure 27: Share of non-performing claims by sector F AB I MN L K DEH OC JPQR G non-performing claims21 and higher write-offs. At the 30 year-on-year level, the largest declines were recorded August 2016 for non-performing claims against enterprises in the sectors with high shares and volumes of non-performing claims, i.e. construction, distributive trades, professional, scientific and technical activities and administrative and support service and real estate activities. Compared with EU countries that requested financial assistance, Slovenia has reduced the share of non-performing claims the most since the beginning of the banking system stabilisation.22 20 0 0 10 20 30 40 50 August 2015 Source: BoS. Figure 28: Main sources of finance in the Slovenian banking system Foreign banks Eurosystem Domestic banks Domestic non-banking sectors Total 4,000 3,000 2,000 1,000 -1,000 -2,000 -3,000 -4,000 -5,000 -6,000 -7,000 Source: BoS; calculations by IMAD. The structure of sources of finance for banks is changing in favour of non-banking sector deposits. These account for as much as two-thirds of the banking system’s total assets, which is around half more than in 2008. Overnight deposits predominate, being almost one-fifth higher year on year. Banks’ dependency on foreign bank financing continues to decline gradually. 21 Because of a longer time series and more detailed data, we considered as non-performing only those claims that are more than 90 days past due, rather than those according to the (broader) EBA definition. 22 In the last two years, the share of non-performing claims has otherwise dropped more notably in Ireland, but in Ireland this share was rising, for more than two years, even after the beginning of the banks’ balance sheet repair (at the end of 2011). Year-on-year change, in EUR m Public finance The general government deficit on a cash basis in the first eight months was lower than in the same period of 2015. This reflects the improving economic conditions, a significant change in the flows of EU funds23 and the retention of some measures to contain expenditure growth. The general government balance excluding interest expenditure, which is important for the moderation of public debt growth, recorded a surplus, which was significantly higher than in the same period last year. 2015 2016 Source: MF, Bulletin of Government Finance; calculations by IMAD. Table 8: Consolidated general government revenue and expenditure on a cash basis Category I-VIII 2015 I-VIII 2016 Category I-VIII 2015 I-VIII 2016 EUR m Y-o-y growth, in % EUR m Y-o-y growth, in % EUR m Y-o-y growth, in % EUR m Y-o-y growth, in % REVENUES TOTAL 10,244.7 3.7 10,345.4 1.0 EXPENDITURE TOTAL 10,941.8 0.0 10,793.6 -1.4 Tax revenues* 5,417.6 6.7 5,570.9 2.8 Salaries, wages and other personnel expenditures** 2,410.5 -0.4 2,516.8 4.4 Personal income tax 1,273.3 3.0 1,350.8 6.1 Expenditure on goods and services 1,433.8 -1.0 1,478.8 3.1 Corporate income tax 405.2 29.6 426.7 5.3 Interest payments 750.8 2.8 785.7 4.6 Taxes on immovable property 97.4 42.7 109.7 12.6 Reserves 108.3 91.5 117.2 8.2 Value added tax 2,130.3 3.5 2,149.7 0.9 Transfers to individuals and households 4,304.4 0.6 4,387.3 1.9 Excise duties 987.7 8.3 1,009.5 2.2 Other current transfers 808.7 -5.1 802.6 -0.8 Social security contributions 3,600.3 3.6 3,762.6 4.5 Investment expenditure 817.4 -3.5 433.9 -46.9 Non-tax revenues 613.0 -26.2 660.7 7.8 Payments to the EU budget 307.9 1.0 271.4 -11.9 Receipts from the EU budget 543.4 19.8 301.0 -44.6 GENERAL GOVERNMENT BALANCE -697.1 -34.0 -448.3 -35.7 Other 70.4 54.2 50.2 -28.7 PRIMARY BALANCE 42.2 -112.2 314.3 645.3 Figure 30: Revenue growth and contributions of Source: MF. Bulletin of Government Finance; calculations by IMAD. Note:* Unlike tax revenues in the consolidated balance of public finance, tax revenues in this table do not include social constributions.** Labour costs include social contributions by the employer. General government revenue rose year on year in the first eight months. The fastest growth is recorded for revenues individual categories to growth Social security contributions related to labour market conditions, i.e. the strengthening Non-tax revenues Tax revenues Capital and transfer revenues, donat. of earnings and employment. The relatively low year- Receipts from the EU budget TOTAL REVENUE (growth in %) on-year growth in revenues related to consumption 8 is attributable to transitional factors – in VAT revenue, to the effect of the change in the payment of VAT on 6 importation.24 Contribution to growth, in pps 4 2 0 -2 -4 2011 2012 2013 2014 2015 Jan-Aug Jan-Aug Source: MF, calculations IMAD. 2015 2016 23 In the first months of 2016, Slovenia still recorded receipts from the EU budget from the previous perspective of the EU (but no payments); there was also no significant expenditure (investment) from the new perspective yet. 24 In line with the amendment to the value added tax, as of 1 July 2016, VAT on importation is no longer paid as an import duty according to the customs declaration (which led to liquidity shortfalls) but is reported by the taxable person in the VAT return. In contrast to the 62% year-on-year decline in payments of VAT on importation, in August FURS data on the import VAT accrued thus indicate relatively high year-on-year growth in this period (7.6%). The figures from the state budget for nine months already show higher realisation of total revenue from VAT (2.2% nominal growth, compared with 0.9% in eight months). Moreover, the data on revenue from excise duties for nine months also indicate high year-on­year growth (8.7%; 2.2% in eight months). Figure 31: Expenditure growth and contributions of individual categories to growth Salaries, wages and oth. person. exp. Expenditure on goods and services Interest payments Reserves Current transfers Capital expenditure Payments to the EU budget TOTAL EXPENDITURE (growth in %) General government expenditure dropped year on year in the first eight months. The bulk of the decline results from lower investment (at the beginning of the implementation of the new financial perspective of the EU). Most of the other expenditures are rising, particularly those related to the easing of some austerity measures (earnings, hiring in the public sector, transfers to individuals and households). 2011 2012 2013 2014 2015 Jan-Aug Jan-Aug Source: MF, calculations IMAD. 2015 2016 Figure 32: Receipts from the EU budget, January – September 2015 and 2016 Total receipts (Jan-September 2016) Total receipts (Jan-September 2015) Structural Funds Cohesion Fund Common Agricultural Policy Other In EUR m Source: MF, calculations IMAD. Slovenia’s net budgetary position against the EU budget is negative (minus EUR 8.4 million). In the first nine months of 2016, Slovenia received EUR 297.3 million from the EU budget. The bulk of receipts were funds for the implementation of the Common Agricultural and Fisheries Policy. The majority of receipts from the Cohesion Fund and Structural Funds (EUR 98.4 million) were paid into the state budget in the first five months (from the previous financial perspective). Only EUR 20 million was disbursed from the state budget for projects (until the end of August). Payments into the EU budget totalled EUR 305.7 million in the first three quarters. selected topics WEF Global Competitiveness Report 2016–2017 According to the WEF1 Global Competitiveness Report, Slovenia’s ranking has improved for the second consecutive year but remains lower than before the crisis. Of the 138 countries covered by the report, Switzerland, Singapore and the US top the list, and five of the other seven countries making up the top ten are from the EU. Year on year, Slovenia has risen three places to 56th in global terms and one place to 22nd among the EU Member States. Its position has improved in all three categories of competitiveness,2 particularly in terms of the basic requirements. This improvement is primarily due to more favourable macroeconomic indicators, which have resulted in more positive perceptions among business executives regarding the ease of doing business in Slovenia. The results of the opinion survey3 also continued to improve. This is also reflected in the overall indicator, which has increased more in the last two years than the average for the EU and the OECD. Despite this improvement, the level of pessimism among the respondents is still higher than before the crisis and Slovenia remains one of the countries that have slipped the most down the competitiveness index since 2008 (falling 14 and 6 places in global and EU terms, respectively). Only Slovenia’s rankings in education, Figure 33: Comparison of overall indicator values in Corruption Slovenia, the EU and the OECD 4.8 4.7 4.6 4.5 4.4 4.3 4.2 4.1 health and innovation, areas where it ranks the highest, are comparable to the pre-crisis period. According to the WEF survey, the most problematic factors when doing business in Slovenia are related to taxes and tax policy. The business executives surveyed were dissatisfied with the high rates of tax and the tax regulations in force (30.1% of respondents in total), the inefficiency of government bureaucracy (18.9%), and the restrictive labour regulations in place (12.3%). Particular mention was made in this regard to the high social contributions and labour costs. Compared to previous years, significantly fewer respondents have seen access to financing as a barrier to business operations, but Slovenia’s rankings on the WEF indicators of financial market development nevertheless remain low. Figure 34: Most problematic factors when doing business in Slovenia (WEF survey) Tax rates Inefficient govern­ment bureaucracy Restrictive labour regulations Tax regulations Policy instability Access to EU Slovenija OECD financing 5.1 5.0 Other 4.9 % of responses Source: WEF. The higher ranking in the ‘basic requirements of competitiveness’ sub-index is mainly due to the improvement in the ‘macroeconomic environment’ and ‘institutions’ indicators. With higher scores in the fiscal indicators, Slovenia has risen by 31 places to 58th for the macroeconomic environment. Business executives are Scores 2006-20072007-20082008-20092009-20102010-20112011-20122012-20132013-20142014-20152015-20162016-2017 Source: WEF; calculations by IMAD. 1 World Economic Forum. 2 In this year’s report, the WEF used 114 indicators, grouped into 12 pillars of competitiveness, which were organised into three sub-indexes. The first sub-index, basic requirements, includes institutions, infrastructure, macroeconomic environment, and health and primary education. The sub-index of efficiency enhancers includes higher education and training, goods and labour market efficiency, financial market development, technological readiness and market size. The third sub-index is innovation and business sophistication factors. This methodology has been left basically unchanged for several years, which allows for comparisons to be made between the years. 3 The number of scores and the rankings largely depend on the surveys completed by the business executives. Of the 114 indicators used in the report, 80 are soft indicators (based on surveys), while the other 34 are based on statistical data for 2015. The surveys were carried out between February and June 2016. also more upbeat about the progress made in certain areas concerning the functioning of the state.4 Their trust in public institutions has improved (up 8 places to 58th), but they remain dissatisfied with the efficiency of the government and decision makers (particularly the wastefulness of government spending and the burdens of government regulation). They have also expressed more trust in private institutions (up 24 places to 57th), giving higher scores to the indicators for the ethical behaviour of companies, the efficacy of corporate boards, the protection of minority shareholders’ interests and the strength of auditing and reporting standards. Slovenia continues to rank among the more competitive countries in terms of health and primary education (16th) and infrastructure (39th). 4 For more on this, see Development Report 2016, the Role of the State and its Institutions chapter. In the ‘efficiency enhancers’ sub-index, Slovenia’s position has improved slightly in most areas but is still significantly lower than before the crisis. Slovenia’s rankings for the indicators of secondary and higher education (22nd) and technological readiness (35th) remain high. In terms of financial system development, Slovenia has improved (up 10 places to 118th), mainly as a result of the intensive process of banks’ balance sheet repair after the recapitalisations in 2013. However, although access to financing has improved slightly in the last year, it remains low. Trust in the soundness of banks is also very low (124th place), with only countries that experienced major problems in their banking sectors during the crisis (Portugal, Cyprus and Greece) ranking lower than Slovenia.5 Regarding labour market efficiency, the main problems remain the tax burden on labour income (137th place), the rules on hiring and firing (132nd place) and the flexibility of wage determination (115th place). In terms of innovation, Slovenia’s ranking remains high and has continued to improve with regard to business sophistication factors. According to the WEF report, positive shifts have been recorded in the ability of companies to innovate, the quality of scientific research institutions, the number of patents and the availability of scientists and engineers on the market. Companies have also increased investment in R&D. However, the report also finds that government procurement policies do not provide adequate support for the development of advanced technological products (128th place). The improvement in business sophistication factors is mainly due to a more positive assessment of production process sophistication and the wider presence of companies in the value chain, while the state of cluster development remains a weakness (87th place). Figure 35: Comparison of WEF indicators for Slovenia and innovation-driven economies Innovation-driven economies* 2016/2017 Slovenia 2016/2017 Slovenia 2008/2009 Institutions Business Macroeconomic education Technological sophistication stability Health and primary Market size Higher education readiness and training Source: WEF; calculations by IMAD. Note: *the top 10 countries. A higher score indicates a better outcome; the highest score is 7. 5 According to BoS data, the liquidity of the banking system is good. At the end of the first quarter, the second-bucket liquidity ratio (the ratio of the sum of financial assets with a residual maturity of up to 180 days to the sum of liabilities with a residual maturity of up to 180 days) exceeded pre-crisis levels (Financial Stability Review, p. 33) Slovenia lags significantly behind innovation-driven countries6 on most of the indicators used in the WEF competitiveness report. The main competitive advantages of innovation-driven countries are their efficient institutions, high-quality infrastructure and human capital. Slovenia has narrowed the gap with these countries only in terms of health and education, but lags considerably behind in infrastructure and innovation. Alongside further development of human capital, innovation is one the main factors that could enhance productivity and competitiveness7 over the long term. The Doing Business 2017 report by the World Bank According to the World Bank’s Doing Business report, Slovenia ranks in the middle of EU Member States. Of the 190 countries surveyed, the top places are held by New Zealand, Singapore and Denmark. Slovenia is ranked 30th again this year,8 and 16th among the EU’s Member States. The calculation of the distance to frontier scores9 indicates that Slovenia has significantly narrowed its gap with the top-ranking countries in the last few years, primarily owing to the adoption of the bankruptcy law and measures that have made it easier and quicker to start a business or register property. The main factors Figure 36: Comparison between Slovenia and the EU on the Doing Business index* Slovenia (DB 2017) Slovenia (DB 2009) Starting a EU business Register- Enforcing ing contracts property Cross- Getting border electricity trading Source: Doing Business. * The distance to frontier scores for a given year are calculated using the methodology that applied that year. For the getting electricity indicator, the figure from DB 2010 is used (when this area was introduced in the survey). 6 The top 10 – Switzerland, Singapore, the US, the Netherlands, Germany, Sweden, the United Kingdom, Japan, Hong Kong and Finland. 7 For more, see the Innovation Capacity chapter in the Development Report 2016. 8 Owing to the methodological changes carried out, the rankings can only be compared with those for the preceding year, which were re-calculated using the methodology for the current year. According to the previous methodology, Slovenia ranked 29th last year, and according to the new methodology it ranked 30th . 9 The countries are ranked on the basis of the distance to frontier scores, i.e. the difference between a country's scores and the scores of the top-ranking country. Table 9: Slovenia’s ranking on the Doing Business index Forestry in 2015 Rank Change 2015 (DB 2016) 2016 (DB 2017) Ease of doing business 30 30 0 Starting a business 45 49 -4 Dealing with construction permits 76 80 -4 Registering property 35 34 1 Getting electricity 35 16 19 Getting credit 127 133 -6 Protecting investors 7 9 -2 Paying taxes 24 24 0 Enforcing contracts 1 1 0 Resolving insolvency 118 119 -1 After the ice glaze damage suffered in 2014, which was followed by the rapid spread of wood pests, the level of wood removed in 2015 was again extremely high. Over 6 million m3 of wood was cut in 2014 and 2015, which was above 1.5 times the amount cut before the ice glaze damage. In both years, the felling recorded came close to the maximum permitted, after having lagged considerably behind in previous years.12 The intensity of tree felling expressed as a ratio of annual felling to the annual wood increment rose significantly to over 70% in these two years. However, the structure of the wood deteriorated significantly: felling declined for tree-tending purposes, which normally accounts for the largest share of total wood felled, after having previously been on the rise. Source: Doing Business 2017. impeding swifter progress are access to funding for businesses and court enforcement of contracts. While the report does not state any major changes that would have improved the ease of doing business over the last year, a deterioration has been recorded in several areas. The distance to frontier scores have not changed significantly this year, but Slovenia has nevertheless slipped in several areas.10 This is mainly attributable to the swifter progress and changes made in other countries, which is evident from the fall in rankings for the indicators for starting a business and dealing with construction permits (both down four places). Slovenia has declined further in terms of the ease of getting credit (by 6 places to 133rd), where it has scored poorly for several years. This low ranking is believed to be a consequence of shortcomings in existing legislation and the lack of a proper credit information system for users. Like in previous years, 2 Slovenia also ranks very low for the enforcing contracts indicator (119th place), which is primarily due to contract 1 enforcement still taking longer in Slovenia than the EU average (Slovenia 1,160 days; EU 594 days). According 0 to the World Bank, it is vital for medium-sized and small enterprises and entrepreneurs, which cannot Two-thirds of the removals made were for sanitary purposes, with the severe tree damage caused by the ice glaze exacerbated by the rapid spread of the spruce bark beetle. This is the reason why 1.8 million m3 of wood was cut last year, three times the amount felled ten years before, which is when the tree damage caused by spruce bark beetle had last been the most widespread. 7 Other removal Sanitary removal 6 Tree-tending removal 5 4 In million m3 3 Source: SURS, Slovenia Forest Service. afford lengthy court proceedings because of limited liquid assets, that disputes before the court are settled efficiently. Slovenia has improved its ranking in the area of electricity supply, which can be attributed to a higher assessment of the reliability of supply than in 2015, when the figures suffered under the impact of a one-off event.11 The rankings in other areas have not changed substantially. 10 The ease of doing business index encompasses ten areas, i.e. starting a business, dealing with construction permits, registering property, getting electricity, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. 11 The reliability of electricity supply is measured by the indicators for the frequency and duration of electricity supply interruptions. The data for these calculations is based on the previous year; the low indicator value in DB 2016 can be attributed to the electricity supply interruptions caused by the ice damage sustained in February 2014. The quantity of the highest-quality roundwood produced rose in 2015. Overall, around 5.2 million m3 of roundwood (i.e. unprocessed wood) was produced. The utilisation rate of felled wood declined in 2014 and 2015: growth in production lagged slightly behind growth in removal, but to a lesser extent in 2015 than 2014.13 In the wake of the ice glaze damage suffered, the volume of pulpwood increased the most; last year, only the volume of sawlogs and veneer logs increased, which is the highest quality wood that generates the highest value added. It 12 In the years just before the ice damage was sustained, the removal recorded had accounted for around two-thirds of the potential felling as determined in the forest management plans. 13 In 2013, 90% of the wood felled was used for roundwood production; in 2014 and 2015, this figure fell to 83% and 86% respectively. The utilisation rate of felled wood depends on the structure of the raw wood categories and the type of trees felled. Table 10: Forests and their economic yield, Slovenia 2000 2005 2010 2011 2012 2013 2014 2015 rast v % 2015/2014 2015/2000 Forest area (thousand ha) 1,134.2 1,169.2 1,185.2 1,184.4 1,184.5 1,183.4 1,181.9 1,182.0 0.0 4.2 Growing stock (million m3) 262.8 300.8 331.0 334.1 337.8 342.4 346.1 348.2 0.6 32.5 Annual wood increment (million m3) 6.9 7.6 8.1 8.3 8.4 8.5 8.6 8.6 0.2 25.2 Removals (million m3) 2.6 3.3 3.4 3.9 3.9 3.9 6.3 6.0 -5.0 131.2 Roundwood production (million m3) 2.3 2.7 2.9 3.4 3.4 3.5 5.3 5.2 -1.3 130.1 Tree felling intensity1 38.0 43.0 41.6 47.1 46.4 46.2 74.0 70.1 ,, ,, Source: SURS, Slovenian Forest Service; calculations by IMAD. Note: 1The ratio of annual felling to annual wood increment. Figure 38: Wood production, structure the ice glaze damage was sustained. Only the export of sawlogs and veneer logs rose, almost by a tenth, which In million m3 subsidies as recorded in annual accounts14 are higher Source: SURS, Slovenia Forest Service. than before the crisis,15 despite their decline in 2015. More than half of subsidies are allocated to three sectors: Figure 39: Net wood exports, structure transportation and storage; professional, scientific and technical activities; and manufacturing. The significant rise in subsidies for transport (rail16 and road17) mainly reflects the increased subsidising of passenger transport, which is however not reflected in a higher number Table 11: Subsidies by type of business entity, in EUR million 2010 2013 2014 2015 Companies 471.8 465.4 471.4 426.1 Co-operatives 3.7 3.6 3.6 3.5 Large sole proprietors 0.8 0.6 0.8 0.7 Small sole proprietors 43.8 41.5 41.3 34.4 TOTAL 520.1 511.1 517.1 464.7 Source: AJPES; calculations by IMAD. 2000200120022003200420052006200720082009201020112012201320142015 5 4 3 2 1 was twice as high as the level for 2013. The share of export-oriented production of this wood category rose by 17 pps to 59% in 2014 and 2015. However, the extensive and rapidly rising exports of this high-quality natural raw material represent a lost opportunity for Slovenia to increase employment and achieve higher value added in other sectors up the forest-wood chain. Subsidies 2010–2015 The volume of subsidies did not decline significantly with the rebound in economic activity; the purposes for which they are allocated do not reflect development policies. The Source: SURS. accounted for around half of the total wood production, which was similar to levels before the ice glaze. Exports of the highest-quality wood increased much more than its production. In 2015, total roundwood imports remained at a similar level, year on year, while exports rose again, to 2.7 million m3, which was up 13% on the figures for 2014 and three-quarters more than before 14 In accordance with the Slovenian Accounting Standards, they include revenues from public funds for subsidies, grants, pay for annual leave, compensation and other revenues, which are sub-divided into revenues that are and that are not related to business results. Our analysis covers both subsidy groups. 15 In 2009 and 2010 Slovenia adopted a fairly large volume of additional anti-crisis instruments that are mostly classified among subsidies and/or state aid. 16 Subsidies for passenger and freight transport by rail rose by 24.3%, from EUR 46.9 million in 2010 to EUR 58.3 million in 2015. 17 Subsidies for passenger transport by road rose from EUR 30.5 million in 2010 to EUR 53.7 million in 2015 (by 76.3%); subsidies for freight transport by road from EUR 13 million to EUR 15.4 million (by 18.5%). Table 12: Subsidies by sector, 2010 and 2015, in EUR million, and compared with value added, 2015, in % 2010 in million 2015 in million 2015 in % of VA A Agriculture, forestry and fishing 18.2 17.6 11.9 B Mining 17.2 10.9 9.2 C Manufacturing 143.4 98.1 1.4 D Electricity, gas, steam and air-conditioning supply 7.1 6.2 0.8 E Water supply, sewerage, waste-management and remediation activities 23.7 14.6 4.7 F Construction 19.5 13.1 1 G Wholesale and retail trade, repair of motor vehicles and motorcycles 39.3 33.8 1 H Transportation and storage 93.9 133.5 6.9 I Accommodation and food service activities 8.5 7.6 1.5 J Information and communication 32.4 17.9 1.5 K Financial and insurance activities 4.8 4.3 2.2 L Real estate activities 3.3 4 1.4 M Professional, scientific and technical activities 71.6 59.6 4.2 N Administrative and support-service activities 12.1 20.9 3.3 O Public administration and defence, compulsory social security; P Education; Q Human health and social work activities; R Arts, entertainment and recreation 15.7 15.2 3.5 S Other service activities 9.1 7.2 5.1 TOTAL 520.1 464.7 2.3 Source: AJPES; calculations by IMAD. Note: VA = value added of passengers transported;18 subsidies for freight transport are still relatively low, but rapidly rising. The relatively high subsidies for professional, scientific and technical activities decreased strongly in 2015 owing to the transitional19 more than halving of subsidies for scientific, research and development activities, which is not encouraging in terms of long-term development, as the development of products with higher value added generally takes more R&D activities. The most subsidised activities20 tend to be those that in addition to market functions also perform a socially useful role. These activities receive around half of all subsidies, create approximately a fifth of value added and employ 18% of the workforce. Between 2010 and 2015, value added generated rose only in transportation and storage activities and in professional, scientific and technical activities. Value added in mining – where subsidies are mainly intended for the closing of coal mines – declined 18 The number of passengers transported by rail declined by 8.1% in 2010– 2015 and the number of passenger kilometres by 14.3%; in inter-urban public transport by road, the number of passengers declined by 2.4% in 2010–2015 (in urban transport by 1.9%) and the number of passenger kilometres by 13%. 19 They are expected to increase again with the beginning of the absorption of funds from the new financial perspective of the EU. 20 In terms of value added generated, these are: agriculture; mining; water supply, sewerage, waste management and remediation activities (municipal activities); transportation and storage; professional, scientific and technical activities; and other activities. significantly. The number of workers also fell in most sectors in this period, remaining unchanged only in municipal activities. Subsidies to companies in manufacturing21 have been declining since 2010; their structure remains unfavourable. In 2015 they accounted for only 1.3% of value added, compared with 2.4% in 2010, which is encouraging in terms of development as high subsidies distort the operation of the free market. An overview of subsidies according to technology intensity22 shows that the share of subsidies for high- and medium-high-technology industries hovers around 40%. With regard to value added created, the most subsidised industries in 2010– 2015 were low-technology industries (the manufacture of clothing in particular); with regard to the number of workers, medium-high technology industries (particularly the manufacture of other transport equipment). Table 13: Subsidies to companies in manufacturing activities according to their technology intensity Share of subsidies in VA Structure of subsidies 2010 2015 2010 2015 High-technology 1.0 1.0 6.7 5.2 Medium-high 2.6 1.5 35.4 34.9 Medium-low 2.7 1.5 34.2 36.7 Low 2.5 1.5 23.7 23.2 Manufacturing, total 2.4 1.3 100.0 100.0 Source: AJPES; calculations by IMAD. Government activities are still not primarily geared towards promoting growth in industries with technological and production advantages.23 Relatively high subsidies are given to industries with competitive advantages in production and rising productivity and exports, which are the main drivers of GDP growth, exports and employment.24 A high level of development potential is also exhibited by industries that do not have production advantages yet, but report stable and high growth in business results.25 These industries and industries with comparative advantages in technology and production are subsidised the least. At the same time, high subsidies 21 Companies receive the bulk of all subsidies allocated to the manufacturing sector (93% in 2015). 22 Manufacturing industries are classified according to their technology intensity using the OECD methodology (Hatzichronoglou, T. (1997). Revision of the High-Technology Sector and Product Classification. OECD STI Working Papers 1997/2. Paris: OECD). 23 Industries are classified on the basis of the following papers: Burger, A. and Kotnik, P. (2014). Strokovna analiza kot podlaga za Strategijo pametne specializacije (Expert analysis as a basis for the Smart Specialisation Strategy), obtained athttp://www.eu-skladi.si/ostalo/ metodologija-za-sps, and Murn, A. (2015. Razvojna usmerjenost državnih pomoči v predelovalni industriji (Development-oriented state aid to the manufacturing sector). IB revija 2015(XLIX)1, pp. 5–20. 24 Value added in industries from the second group rose by 32.9% in 2010– 2015 and the number of workers based on hours worked by 14.6%; value added in total manufacturing rose by 20.2%, while the number of workers dropped by 1.9%. 25 In these industries value added rose by 46.5% in 2010–2015 and the number of employed persons by 17.2%. Table 15: Indicators of the composite index of regional economic performance, the latest available data Region GDP per capita, EUR (current exchange rate) Value added of companies per employee, EUR Employment rate1 Labour migration index2 Personal income tax base per capita, EUR Gross earnings per employee, EUR Composite index of regional economic performance,3 Slo=100 2014 2015 4 2015 4 2015 4 2014 2015 4 2014-2015 Slovenija 18,093 41,124 58.2 0.0 8,002 1,556 100 Osrednjeslovenska 25,771 44,952 59.8 127.6 8,970 1,720 204 Obalno-kraška 17,652 41,101 58.5 100.3 7,921 1,533 118 Gorenjska 15,836 40,409 61.2 84.0 8,254 1,545 119 Goriška 16,377 39,783 59.1 95.7 7,806 1,487 105 Savinjska 16,634 40,499 58.6 97.2 7,564 1,430 96 Jugovzhodna Slovenija 17,382 50,351 60.1 89.2 8,147 1,560 142 Pomurska 12,271 31,488 50.5 89.4 6,955 1,384 21 Primorsko-notranjska 12,967 35,300 61.8 74.6 7,940 1,374 75 Podravska 14,951 32,469 54.8 96.5 7,255 1,420 56 Koroška 14,486 38,051 56.1 86.1 7,887 1,454 80 Posavska 14,915 43,152 58.5 76.7 7,449 1,446 84 Zasavska 10,431 34,381 56.6 62.6 7,462 1,379 35 Source: SURS, AJPES, FURS; calculations by IMAD. Notes: 1Registered persons in employment/working-age persons (15–64 years) x 100. 2Persons in employment (excluding farmers) by municipality of workplace/persons in employment (excluding farmers) by municipality of residence x 100. Calculated from the register data. 3Calculated from the arithmetic average of the standardised values of all six indicators in the table, expressed in the index with regard to the Slovenian average. The indicators are based on the most recent annual data available. 4The territorial changes for the Osrednjeslovenska, Zasavska, Savinjska and Posavska regions entered into effect as of 2015. The Osrednjeslovenska region also has a higher concentration of jobs. This region accounts for the most jobs in Slovenia (over one-third), which results in labour migration to the region. According to the labour migration index,30 which compares persons in employment by place of work with persons in employment by place of residence, the Osrednjeslovenska region is therefore very labour-oriented. In labour-oriented regions, the number of jobs typically exceeds the number of persons employed. In Slovenia, this is the case in the Osrednjeslovenska region (the only very labour-oriented region), in which this surplus is almost 28%. Owing to the surplus in the number 30 The labour migration index (LMI or IDM) is an indicator which, for a specific territorial unit, links the number of workplaces with the number of persons in employment by place of residence (IDM=persons in employment by territorial unit of workplace/persons in employment by territorial unit of residence x 100). It measures only labour migration between individual territorial units and does not take into account internal labour migration within the territorial unit observed. With regard to the labour migration index value, territorial units are classified into the following categories: Labour Labour municipality Migration (administrative unit, region) Index Very labour-oriented 116 or more Moderately labour-oriented 96.0–115.9 Residential municipality (administrative unit, region) Weakly residential 76.0–95.9 Moderately residential 56.0–75.9 Predominantly residential 36.0–55.9 Very residential 35.9 or less Source: Methodological Explanations SURS, http://www.stat.si/statweb/Common/PrikaziDokument. ashx?IdDatoteke=8147, September 2016. of jobs over the number of employed persons who live in the region, the Osrednjeslovenska region attracts labour migrants from all over Slovenia. Another factor is the good transport connections and wide variety of jobs available, particularly for people with higher education. This region also stands out in terms of income: gross earnings per employee exceed the Slovenian average by 10%, and the personal income base is therefore also 12% higher. This is the highest among all the statistical regions on both indicators. Figure 41: GDP structure by region, 2014 Jugovzhodna Slovenija Savinjska Pomurska Goriška Primorsko­notranjska Gorenjska Obalno­kraška Koroška Posavska Zasavska Of the regions with below-average composite index values, Pomurska is ranked the lowest. All the regions with below-average values in the regional economic performance index (i.e. the Savinjska, Posavska, Koroška, Primorsko-Notranjska, Podravska, Zasavska and Pomurska regions) are in the eastern cohesion region. The index value in Pomurska stands at one-fifth of the Slovenian average, and this region generates 3.8% of Slovenia’s GDP. In terms of GDP per capita, it is no longer in last place, with Zasavska taking its position in 2010. It is, however, ranked lowest in terms of value added per employee, the employment rate and the personal income base per capita. Of all the companies in Slovenia, 2.8% operate in the region, which employ 3.4% of the total workforce and generate 2.6% of the total value added. The value added of companies in the Pomurska region contributes the lowest share to the region’s GDP ( just 38%), which is due to the region’s economic structure. The companies in the region generate the most value added (46%) in manufacturing, particularly the manufacture of metals and machinery. At the same time, Pomurska is the most agricultural region in Slovenia. The agricultural sector creates 5.2% of the Activities G–U Activity F Activities BCDE Activity A 100 90 80 70 60 In % 50 40 30 20 10 Source: SURS, Regional Accounts; calculations by IMAD. Figure 43: Company performance, 2015 Zasavska Posavska Koroška Podravska autumn 2004spring 2005spring 2006autumn 2006spring 2007autumn 2007spring 2008autumn 2008spring 2009autumn 2009spring 2010autumn 2010spring 2011autumn 2011spring 2012autumn 2012spring 2013autumn 2013spring 2014autumn 2014spring 2015autumn 2015spring 2016 Source: Eurobarometer. At the personal level, Slovenian respondents were slightly more satisfied with their financial situation than in the previous survey. When asked to identify two main issues at the personal level, the respondents again referred to pensions, the cost of living and the household financial situation as their most pressing concerns, but to a lesser extent than in the previous measurement. The level of satisfaction with the personal employment situation remained unchanged (as in the EU, for both indicators that measure life satisfaction at the personal level). At the country level, the respondents consider the economic Primorsko-notranjska Pomurska Jugovzhodna Slovenija Savinjska Goriška Gorenjska Obalno-kraška Osrednjeslovenska In EUR m Source: AJPES; calculations by IMAD. Note: net profit (+), net loss (-). value added in the region, and agriculture accounts for 6% of its GDP compared to the Slovenian average of 2.2%. The Pomurska region accounts for 4.4% of jobs, which is one of the smallest percentages among all the regions. According to the labour migration index, this is a weakly residential region, with the labour migration index totalling 89.4. The number of jobs in the region is approximately 10% lower than the number of people employed. This means that the remainder work in a different region to where they live. Only half of the region’s working-age population (people aged 15–64) are employed, which is 13% below the Slovenian average. This is reflected not only in the lowest personal income base per capita, but also in the gross earnings per employee, which are more than one-tenth below the average and among the lowest in Slovenia. Life satisfaction, spring 2016 Life satisfaction in Slovenia has continued to improve, with the levels achieved in spring 2016 close to those before the crisis. According to the latest Eurobarometer survey, the proportion of satisfied people was 3 pps higher than the previous measurement taken in November 2015. The EU average declined compared with the previous measurement (down 1 pp to 80%). Figure 44: Life satisfaction, Slovenia and the EU situation (in the EU as a whole and in Slovenia) to be slightly worse and the employment situation marginally better than in the previous survey. This is likely to be the reason for the slightly more optimistic31 expectations for next year in Slovenia in all the four areas measured by the survey; at the EU level, expectations are less optimistic in all four areas. Personal employment situation Personal financial situation 75 70 65 60 55 50 45 40 50 40 30 20 10 0 Health system Pensions Immigration Taxes Crime concerns by over 10% of respondents. In % In % autumn 2008 spring 2009 autumn 2009 spring 2010 autumn 2010 spring 2011 autumn 2011 spring 2012 autumn 2012 spring 2013 autumn 2013 spring 2014 autumn 2014 spring 2015 autumn 2015 spring 2016 Denmark Finland LuxembourgNetherlands SwedenUKMaltaIreland Source: Eurobarometer. Slovenia Belgium Germany Czech R. Austria FranceEstoniaCyprusEU PolandSpainLatvia Slovakia Croatia Lithuania Italy Portugal Hungary Romania Bulgaria Greece in % Source: Eurobarometer. Note: Problems seen as the main Figure 45: Life satisfaction in the EU, spring 2016 Figure 47: Two most important issues at the country level 100 Autumn 2015 Spring 2016 90 Unemploy­ment 80 Economic situation 70 60 Government debt Source: Eurobarometer. In spring 2016, the respondents again perceived unemployment and the economic situation to be the main concerns at the country level. In the previous survey, they were most worried about immigration. The respondents are now less concerned about immigration, with the most pressing issues instead being health and social security, government debt, taxation, unemployment and crime. These responses reveal which current affairs were covered most comprehensibly by the media at the time the survey was taken. 31 When measuring 'optimism', the proportion of those expecting things to improve is monitored. statistical appendix MAIN INDICATORS 2010 2011 2012 2013 2014 2015 2016 2017 2018 Autumn forecast 2016 GDP (real growth rates, in %) 1.2 0.6 -2.7 -1.1 3.1 2.3 2.3 2.9 2.6 GDP in EUR million (current prices) 36,252 36,896 36,003 35,917 37,332 38,570 40,004 41,416 42,885 GDP per capita, in EUR (current prices) 17,694 17,973 17,504 17,439 18,107 18,693 19,376 20,056 20,770 GDP per capita (PPS)1 21,100 21,500 21,500 21,500 22,600 GDP per capita (PPS EU28=100)1 83 82 81 80 82 Rate of registered unemployment 10.7 11.8 12.0 13.1 13.1 12.3 11.2 10.2 9.5 Standardised rate of unemployment (ILO) 7.3 8.2 8.9 10.1 9.7 9.0 8.2 7.5 6.8 Labour productivity (GDP per employee) 3.4 2.4 -1.8 0.0 2.6 1.2 0.4 1.5 1.5 Inflation,2 year average 1.8 1.8 2.6 1.8 0.2 -0.5 0.1 1.4 1.5 Inflation,2 end of the year 1.9 2.0 2.7 0.7 0.2 -0.5 1.1 1.4 1.5 INTERNATIONAL TRADE Exports of goods and services (real growth rates, in %) 10.2 6.9 0.6 3.0 5.7 5.6 5.7 5.5 5.0 Exports of goods 12.0 8.0 0.4 3.3 6.3 5.3 5.9 5.8 5.1 Exports of services 3.4 2.5 1.5 1.9 3.4 6.5 4.9 4.3 4.4 Imports of goods and services (real growth rates, in %) 6.8 5.0 -3.7 2.1 4.2 4.6 5.3 5.9 5.1 Imports of goods 7.6 6.0 -4.3 2.9 3.8 5.0 5.8 6.2 5.2 Imports of services 3.1 -0.4 0.2 -3.1 6.3 2.2 2.8 4.3 4.4 Current account balance3, in EUR million -43 68 930 1,732 2,325 1,998 2,700 2,326 2,272 As a per cent share relative to GDP -0.1 0.2 2.6 4.8 6.2 5.2 6.7 5.6 5.3 Gross external debt, in EUR million 42,123 41,669 42,872 41,658 46,314 44,723 43,400* As a per cent share relative to GDP 116.2 112.9 119.1 116.0 124.1 116.0 Ratio of USD to EUR 1.327 1.392 1.286 1.328 1.329 1.110 1.116 1.118 1.118 DOMESTIC DEMAND Private consumption (real growth rates, in %) 1.3 0.0 -2.5 -4.0 2.0 0.5 2.3 2.2 2.0 As a % of GDP 56.0 56.0 56.8 55.0 54.0 52.1 51.3 51.3 51.1 Government consumption (real growth rates, in %) -0.5 -0.7 -2.2 -2.1 -1.2 2.5 2.0 1.3 0.7 As a % of GDP 20.3 20.4 20.3 19.7 18.7 18.7 18.8 18.8 18.5 Gross fixed capital formation (real growth rates, in %) -13.3 -4.9 -8.8 3.2 1.4 1.0 -4.0 6.0 5.0 As a % of GDP 21.3 20.2 19.3 20.0 19.6 19.5 18.2 19.0 19.7 Sources of data: SURS, BoS, Eurostat, calculations and forecasts by IMAD (Autumn Forecast, September 2015). Notes: 1Measured in purchasing power standard; 2Consumer price index; 3 Balance of payments statistics; *End August 2016. PRODUCTION 2013 2014 2015 2014 2015 2016 2014 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 9 10 11 12 INDUSTRIAL PRODUCTION, y-o-y growth rates, % Industry B+C+D -0.9 2.2 5.6 2.3 3.1 2.6 6.7 5.2 5.5 5.2 4.9 7.8 4.7 2.9 1.5 3.5 B Mining and quarrying 1.3 -3.8 0.4 33.0 -9.6 -28.1 0.4 -14.4 -1.9 23.3 8.6 -7.6 20.3 -4.5 -24.1 -52.5 C Manufacturing -1.5 4.3 6.0 3.1 5.1 5.6 6.8 5.8 6.3 5.3 6.1 9.5 6.4 5.1 3.8 8.3 D Electricity, gas & steam supply1 3.9 -14.2 2.5 -10.0 -11.5 -16.1 5.8 2.4 -0.5 2.2 -6.6 -5.9 -13.0 -16.2 -13.7 -18.1 CONSTRUCTION,2 real indices of construction put in place, y-o-y growth rates, % Construction, total -2.5 19.5 -8.1 40.0 19.8 -3.3 0.3 -8.9 -12.5 -8.3 -31.3 -21.4 6.8 -1.8 -10.5 4.6 Buildings -20.4 3.8 -4.0 6.5 8.0 -4.5 -5.3 -1.1 -5.6 -4.2 -6.6 -11.6 -3.9 -5.2 -12.4 7.0 Civil engineering 6.3 26.5 -9.8 55.7 25.1 -1.9 2.5 -11.5 -15.2 -10.0 -39.9 -24.9 11.6 0.4 -8.6 4.4 MARKET SERVICES, year-on-year growth rates, % Services, total -0.7 3.7 5.4 3.1 5.4 2.2 3.7 4.2 5.0 8.5 5.0 4.2 3.7 2.8 0.6 3.2 Transportation and storage -0.1 6.2 3.2 6.1 7.0 4.5 2.3 3.1 2.2 5.2 3.8 4.4 9.8 2.5 2.4 8.9 Information and communication activities 0.4 1.1 4.6 -0.3 0.6 -0.5 1.4 1.7 4.5 10.2 3.7 4.2 -1.0 -0.3 -0.7 -0.6 Professional, scientific and technical activities -2.1 -1.8 3.5 -2.5 6.6 -5.7 3.5 -0.4 2.6 7.7 0.8 0.9 -4.1 -0.5 -9.0 -7.1 Administrative and support service activities 3.7 2.5 11.6 -1.6 1.8 10.1 14.2 15.5 9.7 8.0 12.5 6.6 2.0 8.8 9.6 12.0 Distributive trades, y-o-y growth rates, % Total real turnover* -1.0 2.4 5.7 -1.2 5.7 2.6 4.9 6.8 4.5 6.6 9.0 9.0 7.9 2.9 0.7 4.2 Real turnover in retail trade -3.7 0.0 1.1 -1.0 2.3 -0.8 0.8 1.4 0.4 1.6 2.2 2.0 4.8 -0.7 -1.3 -0.3 Real turnover in the sale and maintenance of motor vehicles 4.7 7.2 13.9 -1.7 12.8 9.0 11.8 15.8 12.9 15.3 23.1 24.2 13.6 9.4 4.0 13.9 Nominal turnover in wholesale trade & commission trade -0.2 3.8 1.3 3.0 6.0 0.1 0.2 1.5 0.6 3.0 0.2 1.0 9.4 1.6 0.1 -1.4 TOURISM, y-o-y growth rates, %, new methodology from 2009 onwards Total, overnight stays 0.3 -0.5 7.2 2.9 -3.4 3.9 6.8 7.0 9.1 3.3 9.6 0.9 -4.7 6.0 -0.7 5.6 Domestic tourists, overnight stays -3.4 -3.5 6.3 -1.2 -7.7 1.6 6.8 4.9 8.7 3.4 1.3 1.0 -5.8 8.2 -0.7 -3.6 Foreign tourists, overnight stays 2.8 1.4 7.7 5.3 -1.4 5.6 6.9 8.2 9.3 3.2 17.4 0.8 -4.2 4.5 -0.7 13.9 Accommodation and food service activities -1.4 0.3 7.3 2.0 -1.8 -1.1 5.0 6.4 8.4 9.3 9.8 8.2 -4.5 0.5 -2.0 -1.9 AGRICULTURE, y-o-y growth rates, % Purchase of agricultural products, SIT bn, since 2007 in EUR m 478.4 506.9 472.9 122.8 132.5 138.0 102.5 111.3 123.6 135.5 104.6 110.1 45.7 47.4 40.9 49.7 BUSSINES TENDENCY (indicator values**) Sentiment indicator -13.3 -2.2 5.2 -2.1 -0.1 1.3 4.5 4.9 5.4 5.8 3.7 4.6 0.1 1.8 0.7 1.5 Confidence indicator - in manufacturing -5 2 6 3 3 3 7 5 6 6 5 6 2 2 2 4 - in construction -22 -11 -14 -9 -10 -12 -10 -14 -17 -15 -17 -14 -12 -10 -13 -12 - in services -12 5 16 6 7 11 15 16 16 18 17 19 8 10 12 11 - in retail trade 2 9 15 8 10 17 17 16 14 14 24 13 9 18 19 13 Consumer confidence indicator -33 -22 -11 -25 -17 -17 -15 -10 -8 -12 -18 -17 -14 -13 -20 -17 Source of data: SURS. Note: 1Only companies with activity of electricity supply are included. 2The survey covers all larger construction enterprises and some other enterprises that perform construction work. *Total real turnover in retail trade, the sale and repair of motor wehicles, and retail sale of automotive fuels. **Seasonally adjusted data. 2015 2016 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 4.0 7.5 8.4 0.9 6.1 8.4 2.6 8.4 6.2 3.5 8.4 3.6 3.3 8.2 3.4 7.8 9.0 6.6 2.2 9.1 - - -15.8 -5.2 29.3 -36.6 -0.8 6.8 11.4 9.3 -21.1 -10.8 27.4 77.5 9.5 7.0 9.3 -8.1 -5.9 -8.9 -24.1 9.8 - - 4.1 7.4 8.7 1.6 6.8 9.0 3.1 9.0 7.3 4.0 8.6 3.1 4.3 9.8 4.5 9.7 10.8 8.0 3.7 10.9 - - 4.4 9.2 4.1 2.1 0.6 4.7 -3.0 1.8 -0.1 2.6 3.6 0.7 -5.8 -6.0 -8.1 -7.4 -5.1 -5.3 -8.1 -6.1 - - -2.7 6.0 -1.5 -6.9 -8.9 -10.5 -12.8 -13.8 -10.7 -11.6 7.0 -22.2 -25.9 -29.7 -36.0 -27.4 -19.5 -17.9 -14.7 -14.5 - - -0.3 -6.5 -8.2 -5.4 1.0 0.9 -2.9 -11.3 -1.7 -7.0 2.6 -8.1 -9.4 -2.8 -7.5 -12.3 -13.4 -9.4 10.7 4.8 - - -4.2 11.8 0.8 -7.5 -12.2 -14.3 -16.5 -15.1 -14.1 -13.2 8.5 -28.3 -32.2 -39.3 -45.1 -32.5 -21.7 -21.0 -23.7 -21.6 - - 0.7 6.0 4.4 2.0 4.1 6.3 4.6 5.7 4.7 6.4 12.3 7.0 4.7 6.5 3.8 4.0 4.6 4.2 -0.1 5.5 - - -2.0 5.7 3.1 0.8 2.1 6.2 2.4 3.9 0.6 3.9 8.6 3.3 3.6 5.5 2.3 4.1 4.5 4.6 -3.4 5.3 -0.9 3.2 2.0 2.9 0.3 1.8 2.2 4.8 6.6 4.6 15.0 10.9 3.2 3.5 4.4 3.5 3.8 5.3 0.3 3.3 2.8 5.8 2.1 -4.5 2.5 1.0 2.6 2.2 2.9 7.2 13.6 3.1 -0.7 2.1 0.9 0.1 2.9 -0.3 -5.3 2.2 13.4 12.8 16.2 12.4 13.5 20.2 8.7 9.9 10.5 9.7 10.8 3.6 12.5 13.5 11.6 8.1 8.4 3.7 8.4 10.8 - - 2.0 6.4 6.4 2.7 8.1 9.8 3.5 4.9 5.1 3.8 7.8 8.3 6.0 13.3 7.9 8.5 10.8 7.8 5.1 13.7 - - -1.3 2.9 0.7 -0.9 2.5 2.6 0.2 0.2 0.8 0.4 1.8 2.8 0.8 3.7 2.0 0.4 1.5 4.0 1.1 5.4 - - 7.7 12.3 15.4 8.9 17.6 21.4 9.7 15.9 13.1 9.4 19.9 16.8 15.7 33.0 21.1 25.4 30.6 17.1 12.1 27.8 - - -6.8 3.4 4.4 -2.2 1.8 5.0 0.8 0.3 0.8 -2.1 5.6 5.9 -0.2 2.1 -1.1 -1.9 2.9 2.0 -5.9 5.4 - - 6.2 12.4 2.2 6.1 8.1 6.7 10.9 8.7 7.0 1.1 0.6 8.8 9.3 7.0 12.8 -0.4 2.5 0.4 8.1 6.9 - - 9.6 9.9 1.0 10.5 -2.9 7.4 8.3 10.2 6.4 0.9 5.0 5.1 6.8 2.7 -5.0 8.5 -0.5 -3.1 2.3 1.5 - - 4.0 15.7 3.2 3.7 14.2 6.3 12.1 8.1 7.3 1.2 -3.0 11.7 11.0 12.5 28.8 -5.7 3.9 2.3 10.9 9.2 - - 6.0 5.8 3.4 2.2 9.0 8.2 10.3 8.0 7.0 6.2 8.7 13.0 7.8 12.6 9.1 8.9 6.5 9.1 13.3 10.7 - - 34.1 32.1 36.3 37.1 37.0 37.2 43.3 36.2 44.2 49.0 40.3 46.2 33.7 34.2 36.7 36.0 37.3 36.8 39.1 36.3 - - 3.6 4.3 5.6 4.7 5.2 4.9 3.5 6.9 5.7 5.6 5.3 6.6 4 3.5 3.7 5.9 3.5 4.3 5.2 6.5 6.0 7.0 5 6 9 4 6 5 6 7 4 6 6 7 5 5 4 8 5 5 4 7 3 6 -12 -10 -8 -14 -14 -13 -15 -15 -20 -16 -14 -15 -16 -15 -19 -15 -15 -13 -12 -8 -2 -3 12 16 16 17 16 15 15 16 17 18 18 19 16 17 19 22 17 18 19 17 18 21 23 19 9 24 19 5 5 15 23 14 15 12 28 23 21 10 13 17 19 24 30 11 -14 -17 -14 -12 -11 -6 -14 -5 -6 -11 -14 -10 -16 -19 -19 -17 -18 -16 -13 -12 -12 -11 LABOUR MARKET 2013 2014 2015 2014 2015 2016 2014 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 9 10 11 FORMAL LABOUR FORCE (A=B+E) 913.4 917.9 917.4 919.8 917.5 921.3 919.7 917.5 914.5 917.8 917.8 919.7 918.1 922.3 922.2 PERSONS IN FORMAL EMPLOYMENT (B=C+D)1 793.6 797.8 804.6 799.6 803.0 804.4 798.0 805.0 807.1 808.5 803.0 817.2 805.5 806.4 806.8 In agriculture, forestry, fishing 38.2 35.4 29.9 37.1 37.5 35.1 32.8 30.5 29.4 26.9 23.9 23.8 37.6 35.2 35.1 In industry, construction 252.2 252.4 255.2 252.9 254.1 253.8 250.4 255.2 257.3 257.9 254.7 260.7 254.7 255.5 255.5 Of which: in manufacturing 177.7 178.3 181.0 178.2 178.6 179.2 178.8 179.9 181.6 183.6 184.1 186.2 179.0 179.4 179.6 in construction 54.3 54.0 54.3 54.6 55.4 54.5 51.8 55.3 55.7 54.5 50.9 54.6 55.7 55.9 55.8 In services 503.2 510.0 519.6 509.7 511.4 515.5 514.9 519.3 520.4 523.7 524.4 532.7 513.2 515.7 516.2 Of which: in public administration 49.1 48.8 48.1 49.0 49.0 48.5 48.1 48.2 48.3 48.0 48.1 48.4 48.9 48.7 48.5 in education, health-services, social work 121.0 122.2 124.0 122.4 121.6 123.1 123.3 124.1 123.3 125.5 125.9 127.6 122.4 122.9 123.3 FORMALLY EMPLOYED (C)1 698.7 703.0 713.1 703.5 706.1 708.8 704.2 712.9 715.9 719.3 716.2 730.2 708.2 710.9 711.2 In enterprises and organisations 647.6 652.6 662.3 653.1 654.7 657.2 654.6 661.5 664.6 668.6 667.5 679.6 656.4 658.6 659.0 By those self-employed 51.1 50.5 50.8 50.4 51.3 51.6 49.7 51.4 51.4 50.6 48.7 50.7 51.7 52.3 52.2 SELF-EMPLOYED AND FARMERS (D) 94.9 94.8 91.6 96.1 97.0 95.6 93.8 92.1 91.1 89.2 86.9 87.0 97.4 95.5 95.6 REGISTERED UNEMPLOYMENT (E) 119.8 120.1 112.7 120.2 114.5 116.9 121.6 112.5 107.4 109.3 114.8 102.5 112.6 115.9 115.4 Female 57.4 59.6 57.5 59.4 58.4 59.6 60.0 57.7 55.9 56.2 56.6 52.3 57.7 59.9 59.6 By age: 15 to 29 28.8 30.4 26.8 30.5 27.4 30.2 30.0 26.5 23.9 26.7 26.1 21.7 26.7 30.4 30.1 aged over 50 38.9 37.3 36.7 37.7 36.5 36.0 37.8 36.8 36.2 36.1 38.6 36.8 35.9 35.7 35.6 Primary education or less 34.2 33.8 32.3 33.8 32.1 32.8 35.3 32.0 30.5 31.2 33.8 30.0 31.7 32.0 32.1 For more than 1 year 55.4 59.9 59.7 59.9 59.1 59.7 61.1 60.1 59.1 58.4 58.5 56.0 59.2 59.5 59.6 Those receiving benefits 33.0 26.6 23.7 26.2 23.9 23.7 28.7 22.4 21.4 22.2 28.9 21.3 23.2 23.2 22.4 RATE OF REGISTERED UNEMPLOYMENT, E/A, in % 13.1 13.1 12.3 13.1 12.5 12.7 13.2 12.3 11.7 11.9 12.5 11.1 12.3 12.6 12.5 Male 12.5 12.0 11.1 12.1 11.1 11.4 12.3 11.0 10.3 10.7 11.8 10.1 10.9 11.1 11.1 Female 13.8 14.3 13.7 14.2 14.1 14.2 14.4 13.8 13.4 13.4 13.4 12.4 13.9 14.3 14.2 FLOWS OF FORMAL LABOUR FORCE 6.0 -4.6 -6.4 -9.4 -4.8 6.9 -1.4 -7.9 -5.5 8.3 -2.9 -10.4 -2.2 3.3 -0.5 New unemployed first-job seekers 19.1 18.5 15.8 2.7 3.3 8.4 3.5 2.2 2.8 7.4 3.0 2.0 1.7 5.9 1.5 Redundancies 88.7 83.9 81.3 17.3 17.7 23.1 24.4 16.3 17.3 23.3 23.8 15.4 6.3 7.1 6.2 Registered unemployed who found employment 65.1 74.0 71.0 21.4 16.6 15.3 21.8 19.0 16.9 13.3 23.6 20.6 6.7 6.3 5.0 Other outflows from unemployment (net) 37.3 33.2 32.6 7.9 9.2 9.3 7.5 7.5 8.6 9.1 6.0 7.2 3.5 3.4 3.2 WORK PERMITS FOR FOREIGNERS 30.5 25.1 23.2 25.7 24.8 23.6 22.6 23.3 23.7 23.3 21.6 20.0 24.6 24.6 23.4 As % of labour force 3.3 2.7 2.5 2.8 2.7 2.6 2.5 2.5 2.6 2.5 2.4 2.2 2.7 2.7 2.5 Source of data: SURS, PDII, ESS. Note: 1In January 2005, the SORS adopted new methodology of obtaining data on persons in paid employment. The new source of data for employed and self-employed persons excluding farmers is the Statistical Register of Employment (SRE), while data on farmers are forecast using the ARIMA model based on quarterly Figure for farmers from the Labour Force Survey. 2014 2015 2016 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 919.4 918.5 919.9 920.6 917.9 917.3 917.3 915.0 913.6 914.8 917.9 918.8 916.7 916.2 918.0 919.4 919.3 919.9 919.8 916.9 916.6 800.0 794.3 797.4 802.5 803.0 804.9 807.1 805.5 805.6 810.1 810.4 811.4 803.6 798.0 801.9 809.2 813.9 817.6 820.0 817.8 818.7 35.1 32.6 32.7 33.0 30.5 30.5 30.5 29.5 29.3 29.3 27.0 26.8 26.9 23.9 23.9 24.0 23.8 23.8 23.7 22.2 22.1 250.4 249.1 249.9 252.2 254.2 255.1 256.2 256.5 256.9 258.4 259.6 259.8 254.3 252.7 254.1 257.4 259.7 260.7 261.7 262.1 262.0 178.6 178.5 178.8 179.1 179.3 179.9 180.6 180.9 181.3 182.5 183.6 184.1 183.0 183.2 184.1 184.9 185.6 186.2 186.8 186.8 187.1 51.9 50.9 51.3 53.2 55.0 55.3 55.6 55.5 55.6 56.0 56.1 55.7 51.6 49.8 50.2 52.7 54.2 54.6 55.0 55.3 55.2 514.5 512.6 514.7 517.3 518.2 519.2 520.4 519.5 519.4 522.3 523.8 524.8 522.5 521.4 524.0 527.8 530.4 533.2 534.6 533.5 534.6 48.3 48.0 48.1 48.2 48.2 48.0 48.3 48.2 48.3 48.2 47.9 48.3 48.0 47.9 48.1 48.3 48.3 48.4 48.5 48.5 48.6 123.1 122.6 123.4 123.9 124.0 124.1 124.1 122.8 122.6 124.5 125.2 125.7 125.5 125.0 125.8 126.8 127.4 127.7 127.8 126.5 126.5 704.4 701.0 703.6 708.2 710.9 712.7 714.9 714.3 714.6 718.8 721.2 722.1 714.5 711.3 715.0 722.2 727.0 730.6 733.0 732.2 733.1 654.0 651.8 654.3 657.6 659.6 661.3 663.5 663.0 663.3 667.4 669.7 670.9 665.3 663.2 666.7 672.6 676.6 679.9 682.2 681.4 682.2 50.4 49.1 49.3 50.6 51.4 51.4 51.4 51.3 51.3 51.4 51.4 51.2 49.2 48.2 48.3 49.6 50.4 50.7 50.8 50.8 50.9 95.5 93.3 93.8 94.3 92.0 92.2 92.1 91.2 91.0 91.3 89.3 89.2 89.1 86.7 86.9 87.0 86.9 87.0 87.0 85.6 85.7 119.5 124.3 122.6 118.1 114.9 112.4 110.2 109.6 107.9 104.8 107.5 107.4 113.1 118.2 116.0 110.2 105.5 102.3 99.8 99.1 97.9 59.5 60.9 59.9 59.2 58.5 57.6 56.8 56.9 56.4 54.6 56.2 55.8 56.6 57.9 56.9 54.9 53.5 52.3 51.3 51.4 51.0 30.2 30.8 30.2 29.0 27.7 26.4 25.4 24.8 23.9 22.9 26.2 26.9 26.9 27.3 26.4 24.7 22.9 21.5 20.5 20.1 19.6 36.7 38.1 37.9 37.3 37.0 36.8 36.7 36.6 36.3 35.7 35.6 35.6 37.2 39.1 38.9 37.9 37.2 36.8 36.3 36.0 35.6 34.4 36.1 35.9 33.9 32.7 31.9 31.4 31.0 30.5 30.1 30.3 30.4 33.0 34.6 34.3 32.4 30.8 30.0 29.2 28.6 28.2 60.1 61.5 61.0 60.8 60.3 59.9 60.0 59.5 59.0 58.9 58.8 58.2 58.2 59.2 58.5 57.8 56.6 56.1 55.4 54.3 53.6 25.5 29.4 29.4 27.3 23.1 22.4 21.8 21.8 21.5 20.8 20.6 20.7 25.3 30.2 29.5 26.9 22.1 21.3 20.7 21.2 20.1 13.0 13.5 13.3 12.8 12.5 12.3 12.0 12.0 11.8 11.5 11.7 11.7 12.3 12.9 12.6 12.0 11.5 11.1 10.8 10.8 10.7 12.0 12.6 12.5 11.7 11.3 11.0 10.7 10.6 10.4 10.1 10.3 10.4 11.4 12.2 11.9 11.1 10.5 10.1 9.8 9.6 9.4 14.2 14.6 14.4 14.2 14.0 13.8 13.6 13.6 13.5 13.1 13.4 13.3 13.5 13.7 13.5 13.0 12.7 12.4 12.1 12.2 12.1 4.0 4.8 -1.7 -4.5 -3.2 -2.5 -2.1 -0.7 -1.6 -3.2 2.7 -0.1 5.7 5.1 -2.1 -5.8 -4.8 -3.2 -2.5 -0.7 -1.2 1.0 1.3 1.1 1.1 0.8 0.7 0.8 0.7 0.7 1.4 5.0 1.3 1.1 1.2 0.9 0.9 0.7 0.7 0.7 0.6 0.6 9.8 12.5 5.9 6.0 5.8 5.2 5.3 6.5 5.1 5.8 6.5 6.5 10.3 12.9 5.7 5.2 5.3 5.1 5.0 6.1 4.8 4.0 6.2 6.5 9.0 7.3 6.0 5.7 5.2 4.7 7.0 5.4 4.8 3.1 6.7 6.9 10.0 8.4 6.5 5.7 5.0 4.3 2.7 2.8 2.2 2.5 2.4 2.6 2.5 2.6 2.7 3.4 3.3 3.1 2.6 2.2 1.8 1.9 2.4 2.4 2.5 2.4 2.3 22.8 22.6 22.3 22.8 23.1 23.6 23.2 23.3 23.6 24.1 23.8 23.3 22.8 22.1 21.8 21.0 20.3 20.3 19.5 19.0 18.2 2.5 2.5 2.4 2.5 2.5 2.6 2.5 2.5 2.6 2.6 2.6 2.5 2.5 2.4 2.4 2.3 2.2 2.2 2.1 2.1 2.0 WAGES EUR m 2013 2014 2015 2014 2015 2016 2015 Q2 16 Aug 16 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 GROSS WAGE PER EMPLOYEE, nominal y-o-y growth rates, % TOTAL 1,556 1,566 1,571 -0.2 1.1 0.7 1.1 1.3 1.2 0.5 0.6 0.4 1.3 2.3 1.8 Private sector activities (A–N; R–S) 1,506 1,503 1,516 0.7 1.5 0.8 1.4 1.4 1.3 0.4 0.8 0.6 1.2 1.8 1.1 Public service activities (OPQ) 1,708 1,759 1,744 -2.3 0.3 0.6 0.3 1.1 0.8 0.8 0.2 -0.1 1.7 3.9 4.2 Industry (B–E) 1,555 1,546 1,580 2.6 3.1 1.7 2.7 3.4 2.9 1.4 1.9 1.2 2.1 2.2 1.6 Trad. market services (GHI) 1,381 1,386 1,370 0.1 1.0 0.9 0.7 0.9 1.3 0.2 1.4 1.0 1.0 1.6 0.8 Other market services (J–N; R–S) 1,679 1,671 1,684 -1.3 -0.3 -0.4 0.5 -0.5 -0.8 -0.5 -0.9 -0.5 0.1 1.2 0.3 A Agriculture, forestry and fishing 1,315 1,280 1,303 0.8 0.7 0.2 -0.3 2.3 0.5 -0.7 0.0 -0.2 1.6 2.2 -0.7 B Mining and quarrying 2,003 2,036 2,139 -2.0 5.9 -5.9 8.3 10.7 2.0 -8.9 -4.8 -4.8 -4.9 1.1 1.6 C Manufacturing 1,515 1,506 1,536 2.8 3.3 2.1 2.8 3.1 3.2 2.1 2.3 1.8 2.3 2.4 1.7 D Electricity, gas, steam and air conditioning supply 2,317 2,301 2,407 3.0 2.6 -1.0 -1.1 6.5 -0.1 -4.4 1.7 -3.0 1.9 2.3 1.9 E Water supply sewerage, waste management and remediation activities 1,496 1,498 1,534 0.7 1.4 1.5 2.2 1.5 2.2 1.3 0.3 1.8 2.2 2.3 2.6 F Constrution 1,189 1,197 1,220 -1.4 0.3 -0.2 0.7 -0.2 0.9 -0.7 -0.8 -0.5 1.0 1.5 1.5 G Wholesale and retail trade, repair of motor vehicles and motorcycles 1,415 1,431 1,407 0.4 1.2 1.4 1.0 1.1 1.3 0.4 1.8 1.6 1.8 2.4 1.6 H Transportation and storage 1,474 1,454 1,441 -0.2 1.1 0.5 0.0 0.3 3.0 0.7 1.4 0.6 -0.5 -0.1 -0.6 I Accommodation and food service activities 1,070 1,079 1,096 -0.4 -0.2 -1.0 0.1 0.6 -2.0 -2.2 -1.0 -1.0 -0.1 2.0 0.3 J Information and communication 2,096 2,076 2,088 -1.4 0.1 1.0 1.7 0.8 0.8 2.6 -0.2 1.0 0.7 1.1 0.6 K Financial and insurance activities 2,259 2,271 2,283 0.1 1.2 2.1 2.7 -0.2 2.3 3.9 1.9 1.8 1.0 2.0 -0.1 L Real estate activities 1,480 1,461 1,458 -0.3 -1.2 -0.7 -1.1 -0.5 -2.4 -1.1 -1.6 -0.5 0.5 0.4 0.6 M Professional, scientific and technical activities 1,725 1,710 1,739 -2.4 1.1 0.8 0.5 1.5 2.2 0.8 1.7 0.5 -0.1 1.3 0.5 N Administrative and support service activities 1,020 1,044 1,054 0.0 2.4 0.4 2.7 2.6 1.2 0.3 -0.6 0.0 1.9 3.7 3.8 O Public administration and defence, compulsory social security 1,789 1,847 1,858 -1.4 1.0 2.1 1.2 2.1 1.5 1.8 0.7 0.4 5.2 6.8 4.9 P Education 1,648 1,697 1,652 -3.3 0.0 -0.2 -0.1 0.7 0.7 0.5 -0.1 -0.6 -0.3 1.8 3.9 Q Human health and social work activities 1,708 1,755 1,751 -2.0 -0.1 0.3 -0.2 0.7 0.4 0.2 0.1 0.1 0.8 3.6 3.9 R Arts, entertainment and recreation 1,613 1,651 1,625 -3.0 -0.5 -0.5 -0.5 0.2 -1.1 -0.5 -0.2 -1.6 0.3 1.6 2.9 S Other service activities 1,346 1,325 1,329 -0.4 -1.1 -2.2 -0.7 -0.3 -2.2 -1.9 -2.8 -2.5 -1.5 -0.1 -1.0 Source of data: SURS, calculations by IMAD. 2014 2015 2016 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 1.4 0.2 -0.3 1.6 0.8 -0.2 1.2 0.4 0.5 0.2 -0.2 2.5 1.5 1.1 3.5 2.4 1.4 1.8 1.3 0.2 2.8 1.7 0.0 -0.7 1.9 1.1 -0.3 1.7 0.6 0.7 0.4 -0.3 3.1 0.6 0.0 3.3 2.0 0.9 1.6 0.8 -1.0 2.7 0.6 0.9 0.7 0.8 0.2 0.3 0.1 0.0 -0.1 -0.2 0.1 0.9 4.1 4.0 4.0 3.6 3.0 2.7 2.8 3.6 3.1 4.1 0.2 -0.1 4.2 2.8 0.4 2.6 1.6 1.2 1.0 0.6 4.8 0.5 -0.2 4.4 2.5 0.2 2.7 1.9 -1.8 4.0 0.9 -0.1 0.1 0.4 1.5 0.8 1.8 1.2 1.1 0.7 0.2 1.9 0.6 0.6 2.8 1.4 1.7 0.7 0.0 -0.7 1.3 -0.8 -0.1 -2.1 0.7 -1.3 -2.0 0.6 -0.9 0.1 -0.6 -1.6 1.4 0.6 -0.6 2.5 1.7 0.8 0.6 -0.4 -0.5 1.5 1.5 -0.9 0.3 -1.3 -2.0 -1.5 3.6 -0.4 0.0 -0.2 -4.0 8.5 0.2 1.4 2.9 2.5 -0.9 1.3 -2.7 -0.2 2.7 5.5 -4.0 -20.3 -0.5 -1.0 -5.5 -7.7 1.8 -9.6 -6.6 -4.2 -5.4 -5.1 -1.5 1.4 3.4 -3.9 -0.4 9.2 -6.6 10.1 4.4 0.3 1.1 4.8 3.0 0.6 3.2 1.2 2.2 1.8 1.0 4.6 1.1 0.0 4.7 2.4 0.5 2.9 1.6 -1.1 3.8 2.9 -0.4 -9.8 -2.8 3.5 0.9 0.6 5.7 -8.2 -6.0 -2.6 12.1 -4.5 -0.7 3.4 4.3 -2.4 1.7 6.5 -7.1 5.9 2.7 -0.2 1.0 3.0 1.0 -0.6 0.6 3.1 1.2 1.0 2.1 4.3 0.1 0.3 2.6 4.1 1.3 3.7 2.6 -2.7 5.6 1.1 -0.9 -1.0 -0.1 -1.0 -1.8 0.3 -0.6 -0.6 -0.4 -1.2 3.3 1.0 0.5 1.8 2.3 1.5 2.0 1.1 -0.4 4.4 1.2 0.6 0.1 0.6 1.9 1.1 2.5 1.9 1.7 1.1 1.2 2.9 1.3 1.2 4.2 1.9 3.3 1.1 0.6 -0.1 1.8 1.5 -0.5 1.6 1.0 2.0 0.8 1.4 1.0 0.4 0.5 -1.6 0.3 -0.4 -0.8 -0.3 0.7 -0.9 0.2 -0.9 -2.2 0.7 -2.0 -2.4 -3.2 -1.0 -1.2 -0.4 -1.3 -1.7 -0.1 -1.1 -0.8 0.9 -0.2 1.5 3.3 1.2 0.0 0.7 0.3 0.2 1.2 0.1 0.8 0.5 6.5 -1.4 -0.7 1.5 1.6 0.5 1.0 -0.3 1.2 1.2 0.1 1.4 1.8 0.7 1.5 -0.6 -1.9 1.8 0.5 8.5 -1.8 5.1 2.7 -1.6 4.8 1.1 2.9 1.3 -2.9 3.0 3.0 -2.4 5.8 2.9 1.1 -0.4 -1.1 0.6 3.6 -2.6 -1.1 -1.6 -0.5 -1.0 -1.6 -2.2 -0.9 0.0 -0.5 -0.3 1.0 0.7 0.2 1.0 -0.1 -0.7 0.0 2.3 -0.7 0.8 3.7 1.0 1.9 -0.4 2.1 2.0 0.9 0.2 2.5 -1.1 -1.4 1.5 -0.3 -0.9 2.7 2.0 0.4 1.6 0.0 -0.5 0.5 1.9 0.4 -0.1 0.5 -0.5 -2.0 0.8 -0.7 0.2 0.5 0.7 3.5 1.4 2.1 4.2 4.6 4.0 4.2 3.2 2.6 3.9 1.9 1.7 1.9 2.0 0.2 1.0 0.8 0.5 0.7 0.1 1.8 4.1 9.7 7.3 7.0 6.2 5.3 3.6 4.0 4.9 4.8 0.5 0.5 0.6 0.5 -0.4 -0.1 0.2 -0.5 -0.6 -0.6 -1.0 -0.8 1.1 1.7 1.6 2.0 2.1 2.2 2.4 2.6 2.6 -0.4 0.6 -0.2 0.2 0.9 0.2 -0.7 0.2 0.0 0.0 -0.2 -0.1 2.6 3.7 4.0 3.1 2.0 2.4 2.3 3.4 2.1 0.7 -0.5 -1.4 0.3 0.0 -0.3 -0.5 -1.5 -1.4 -1.8 0.4 1.0 -0.4 1.5 2.1 1.3 4.9 1.1 1.3 2.4 0.2 -3.0 -2.8 -1.9 -1.1 -2.1 -3.4 -3.0 -2.6 -2.1 -2.7 -2.2 -0.4 -1.8 0.3 -0.6 0.2 -1.4 -1.2 -0.3 -1.9 0.0 PRICES AND INDICATORS OF OVERALL COMPETITIVENESS 2013 2014 2015 2014 2015 2016 2014 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 9 10 11 12 CPI, y-o-y growth rates, % 1.8 0.2 -0.5 -0.2 -0.1 -0.4 -0.6 -0.5 -0.6 -0.7 -0.2 0.1 -0.3 -0.1 -0.2 0.2 Food, non-alcoholic beverages 3.6 -0.3 0.9 -1.0 -0.7 -0.3 1.1 1.5 1.2 0.4 0.2 1.3 -0.4 -0.5 -0.3 -1.2 Alcoholic beverages, tobacco 7.0 3.6 1.9 3.6 3.7 4.2 2.1 1.0 0.6 0.1 0.3 0.3 3.8 3.7 3.4 4.0 Clothing and footwear 0.2 -0.9 -0.9 -0.1 -1.6 -0.9 -1.8 -0.4 -0.4 0.5 0.6 -1.7 -1.2 -1.7 -2.6 -0.5 Housing, water, electricity, gas 3.1 0.1 -1.3 -0.3 -0.8 -1.6 -1.3 -1.2 -1.0 -1.1 -1.3 -1.0 -0.7 -0.6 -0.5 -1.3 Furnishings, household equipment -1.2 -1.2 -1.2 -2.0 -1.6 -1.8 -1.9 -0.4 -0.8 0.0 0.2 0.2 -2.1 -2.3 -1.1 -1.3 Medical, pharmaceutical products -0.5 -0.1 0.5 -0.9 -0.4 0.0 -0.1 1.2 0.8 0.2 0.5 0.5 -0.9 -0.5 -0.4 -0.3 Transport 0.3 0.2 -5.1 -0.1 -0.9 -4.5 -4.4 -5.3 -6.3 -5.4 -4.8 -3.1 -0.9 -0.4 -0.1 -2.2 Communications -1.2 -1.9 1.1 -2.8 -2.8 -0.5 -1.3 1.7 4.3 4.0 5.2 2.6 -3.4 -3.5 -2.4 -2.5 Recreation and culture 0.1 0.8 1.0 -0.2 3.0 4.2 1.5 0.3 -1.6 -2.0 0.8 1.7 0.1 1.8 3.0 4.2 Education 2.6 0.1 0.6 0.0 0.8 0.7 0.8 0.8 0.0 0.1 0.0 0.0 0.7 0.6 0.9 0.7 Catering services 6.5 1.1 0.5 1.0 0.7 1.0 0.2 -0.1 1.0 1.7 2.1 2.8 0.7 0.6 0.7 0.8 Miscellaneous goods & services 1.3 1.6 1.4 1.6 1.2 0.8 0.9 1.1 2.9 0.5 1.0 1.5 1.7 1.5 -3.6 5.8 HCPI 1.9 0.4 -0.8 0.1 0.0 -0.5 -0.8 -0.8 -0.9 -0.9 -0.4 0.0 -0.1 0.1 0.1 -0.1 Core inflation (excluding fresh food and energy) 1.6 1.0 0.7 0.6 0.7 1.0 0.4 0.7 0.9 0.3 1.2 0.9 0.5 0.4 0.4 1.3 PRODUCER PRICE INDICES, y-o-y growth rates, % Total 0.0 -0.6 -0.2 -0.5 -0.1 0.1 0.6 -0.4 -1.2 -1.8 -2.2 -1.3 -0.3 0.0 0.0 -0.2 Domestic market 0.3 -1.1 -0.5 -1.1 -0.8 -0.3 0.0 -0.5 -1.2 -1.6 -1.9 -1.5 -1.1 -1.0 -0.9 -0.6 Non-domestic market -0.2 -0.1 0.1 0.1 0.7 0.5 1.3 -0.3 -1.2 -2.0 -2.6 -1.2 0.6 1.1 0.8 0.3 euro area -0.4 -0.7 0.1 -0.6 0.8 0.7 1.0 0.1 -1.3 -2.3 -2.5 -1.9 -0.1 0.8 0.8 0.8 non-euro area 0.3 1.1 -0.1 1.8 0.6 0.1 1.8 -1.1 -1.1 -1.4 -2.6 0.1 2.2 1.8 0.9 -0.8 Import price indices -0.4 -1.4 -0.7 -1.0 -1.2 -0.7 0.2 -0.5 -1.6 -2.2 -2.3 -1.7 -1.1 -0.5 -0.9 -2.3 PRICE CONTROL,1 y-o-y growth rates, % Energy prices 0.2 -1.9 -9.9 -1.5 -1.0 -9.0 -7.5 -10.7 -12.6 -13.2 -10.6 -6.8 -2.9 0.5 0.7 -4.0 Oil products 1.7 0.7 -12.4 1.7 -2.0 -11.9 -9.6 -13.1 -15.1 -13.8 -12.3 -7.9 -0.3 -0.2 -0.1 -5.7 Transport & communications 11.3 11.1 0.3 7.3 7.3 1.1 0.0 0.0 0.1 0.1 0.1 0.1 7.3 7.3 7.3 7.3 Other controlled prices2 -1.5 3.6 1.6 3.2 3.2 5.0 0.5 0.5 0.4 0.2 0.1 0.1 3.6 3.4 3.1 3.1 Direct control – total 1.2 0.5 -8.5 0.4 -0.1 -7.5 -6.4 -9.2 -11.1 -11.3 -9.2 -5.9 -0.7 1.2 1.2 -2.6 INDICATORS OF OVERALL COMPETITIVENESS3, y-o-y growth rates, % Effective exchange rate,4 nominal 1.0 0.3 -2.8 0.0 -1.0 -3.1 -3.7 -2.4 -1.9 0.5 1.4 0.6 -0.4 -0.8 -0.8 -1.2 Real (deflator HICP) 1.3 -0.1 -3.8 -0.7 -1.4 -3.6 -4.8 -3.4 -3.1 -0.7 0.8 0.2 -1.2 -1.5 -1.3 -1.4 Real (deflator ULC) -0.2 -1.8 -4.0 -2.2 -1.5 -4.3 -3.5 -2.4 -2.1 0.7 0.9 USD / EUR 1.3282 1.3288 1.1096 1.3252 1.2492 1.1270 1.1047 1.1119 1.0949 1.1018 1.1293 1.1164 1.2901 1.2673 1.2472 1.2331 Source of data: SURS, ECB; calculations by IMAD. Note: 1 The structure of groups varies. Data for individual years are not fully comparable to those published previously. On 1 July 2007, the electricity market was liberalised. 2 After a longer period of unchanged prices, at the beginning of 2013, the Decree on the pricing of mandatory local public services in the field of environmental protection (Official Gazette of the RS, No. 87/2012) transferred the responsibility for approving price changes to local communities. 3 Source for effective exchange rate series ECB; 4 Harmonised effective exchange rate – a group of 19 EU Member States and 18 euro area countries; an increase in value indicates appreciation of the national currency and vice versa. 2015 2016 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 -0.5 -0.4 -0.3 -0.7 -0.5 -0.7 -0.4 -0.3 -0.6 -0.8 -0.5 -0.5 -0.5 -0.7 -0.9 -0.6 -0.4 0.3 0.2 0 0.2 -1.3 -0.3 0.7 0.8 1.3 1.2 1.4 1.8 1.2 1.1 1.0 1.5 0.4 0.5 0.4 -0.2 -0.2 1.1 1.3 1.4 1.1 4.1 4.2 4.2 4.1 1.8 0.6 1.1 1.0 0.9 0.7 0.9 0.1 0.2 0.2 0.0 0.3 0.2 0.5 0.4 0.2 0.4 1.4 -0.6 -3.1 -2.4 -1.7 -1.2 0.0 -0.7 -0.4 -2.0 0.1 0.8 0.3 0.8 0.5 0.8 0.7 0.4 -1.4 -0.9 -2.8 -1.5 -1.9 -1.3 -1.0 -1.3 -1.5 -1.9 -0.8 -0.9 -0.9 -1.1 -1.0 -0.7 -1.1 -1.4 -1.5 -1.3 -1.2 -0.4 -1.4 -1.1 -1.4 -1.9 -2.1 -2.3 -2.1 -1.4 -0.4 -0.4 -0.2 0.0 -1.4 -1.1 -0.7 0.4 0.2 0.2 0 0.5 0.1 0.5 0.1 0.4 -0.3 0.1 -0.2 -0.3 0.2 1.2 1.3 0.9 0.8 0.7 0.7 -0.1 0.4 0.2 0.1 0.3 1.1 0.6 0.5 0.4 -4.8 -4.6 -4.0 -5.1 -4.0 -4.2 -4.5 -4.8 -6.5 -6.7 -7.0 -5.2 -4.5 -5.5 -6.2 -5.2 -5.3 -4 -3.8 -4.5 -0.9 -2.6 1.2 0.1 -0.8 -0.5 -2.6 1.7 1.7 1.7 3.3 4.3 5.3 5.3 2.9 3.9 4.5 5.2 6 2.3 2.2 3.4 4.1 4.1 4.3 1.3 2.2 1.0 0.0 0.3 0.6 -0.8 -1.8 -2.3 -1.8 -2.4 -1.9 0.1 0.5 1.7 2.7 2.3 0.2 0.6 0.7 0.8 0.8 0.8 0.9 0.8 0.8 0.6 0.1 0.0 0.0 0.2 0.0 0.0 0.0 0 0 0 0 -0.1 1.2 1.0 0.8 0.8 -0.3 0.1 0.0 -0.4 0.0 0.2 1.4 1.4 1.2 2.1 1.9 1.8 2.2 2.3 2.7 3.1 2.5 0.9 1.0 0.6 0.8 0.7 1.1 1.3 1.2 1.0 1.2 6.5 1.1 0.6 0.4 0.4 0.6 1.2 1.2 1.3 1.7 1.6 -0.7 -0.5 -0.4 -0.7 -0.8 -0.9 -0.7 -0.6 -1.0 -1.2 -0.9 -0.6 -0.8 -0.9 -0.9 -0.7 -0.5 0.1 -0.1 -0.2 0.2 1.1 1.0 0.8 0.5 0.3 0.3 0.6 0.8 0.8 0.8 1.2 0.7 0.1 0.3 0.4 0.8 1.2 1.6 1.2 1.1 0.5 -0.1 0.1 0.4 0.9 0.6 0.4 0.2 -0.4 -1.0 -1.1 -1.2 -1.4 -1.6 -1.7 -2.2 -2.5 -2.2 -2.0 -1.8 -1.4 -0.9 -0.6 -0.4 0.0 0.0 0.1 -0.2 -0.2 -0.4 -0.9 -0.9 -1.3 -1.4 -1.5 -1.4 -1.9 -2 -1.9 -1.8 -1.7 -1.6 -1.1 0.3 0.5 0.8 1.8 1.1 1.0 0.5 -0.4 -1.1 -1.2 -1.2 -1.3 -1.7 -1.9 -2.4 -2.9 -2.5 -2.2 -1.8 -1.3 -0.6 0.8 0.9 0.6 1.2 0.8 1.0 0.8 0.0 -0.6 -1.0 -1.3 -1.6 -2.0 -2.3 -2.6 -2.7 -2.6 -2.3 -2.3 -2 -1.3 -0.6 -0.2 1.1 3.0 1.6 1.0 -0.2 -1.0 -2.2 -1.6 -0.9 -0.7 -1.1 -1.1 -2 -3.4 -2.4 -1.8 -0.7 0.3 0.8 -1.5 -0.9 0.3 0.5 0.1 0.0 0.0 -0.5 -0.8 -1.8 -1.7 -1.4 -1.9 -2.4 -2.4 -3.1 -2.2 -1.7 -1.8 -1.9 -1.4 -9.8 -9.4 -7.6 -8.5 -6.7 -7.4 -9.0 -10.3 -12.9 -13.2 -13.5 -11.0 -11.2 -13.7 -14.5 -11.3 -11.6 -8.8 -8.5 -9.0 -3.0 -13.2 -12.3 -10.2 -11.5 -8.4 -8.8 -10.9 -12.6 -15.8 -16.0 -16.1 -13.2 -11.5 -14.3 -15.6 -12.1 -13.7 -11.0 -10.4 -10.2 -3.2 1.1 1.1 1.1 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 3.4 5.7 5.8 0.8 0.8 0.1 0.1 1.4 0.1 0.3 0.5 0.5 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.0 -8.4 -7.9 -6.2 -7.4 -5.6 -6.2 -7.6 -8.6 -11.3 -11.5 -11.8 -9.8 -9.6 -11.7 -12.6 -9.7 -10.1 -7.7 -7.4 -7.8 -2.4 -2.2 -2.9 -4.2 -4.5 -3.6 -3.0 -3.2 -2.5 -1.7 -1.6 -2.3 -1.8 -0.3 0.6 1.3 1.9 1.4 0.9 1.1 0.5 0.3 -2.6 -3.5 -4.7 -5.4 -4.8 -4.3 -4.2 -3.3 -2.8 -3.0 -3.6 -2.8 -1.6 -0.5 0.1 1.0 0.7 0.7 0.7 0.0 0.0 1.1621 1.1350 1.0838 1.0779 1.1150 1.1213 1.100 1.1139 1.1221 1.1235 1.0736 1.0877 1.086 1.1093 1.110 1.134 1.131 1.123 1.107 1.121 1.121 BALANCE OF PAYMENTS 2013 2014 2015 2014 2015 2016 2014 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 8 9 10 11 BALANCE OF PAYMENTS, BPM6 methodology, EUR m Current account 1,732 2,325 1,998 596 642 582 435 462 641 460 728 769 14 337 297 91 Goods 708 1,181 1,498 291 305 312 348 382 424 344 495 478 -32 204 176 42 Exports 21,692 22,961 24,039 5,719 5,716 5,984 5,881 6,063 5,934 6,160 6,066 6,400 1,545 2,140 2,164 1,996 Imports 20,984 21,780 22,541 5,428 5,411 5,672 5,533 5,681 5,510 5,817 5,571 5,922 1,576 1,936 1,987 1,953 Services 1,732 1,697 2,019 432 566 386 394 524 609 492 471 557 218 161 127 126 Exports 5,317 5,558 6,025 1,383 1,596 1,402 1,260 1,511 1,730 1,524 1,374 1,558 542 501 478 419 Imports 3,586 3,862 4,006 951 1,030 1,015 866 987 1,121 1,032 903 1,001 324 340 352 292 Primary income -192 -125 -982 -49 -139 -45 -114 -331 -285 -252 -81 -171 -146 -13 6 -49 Receipts 1,117 1,396 1,632 348 311 350 437 417 371 407 485 379 87 99 94 110 Expenditures 1,309 1,521 2,614 397 450 395 551 748 656 659 566 550 232 112 88 159 Secondary income -516 -428 -537 -78 -89 -71 -193 -113 -107 -124 -157 -95 -27 -15 -12 -30 Receipts 632 709 725 215 162 188 153 184 173 215 156 172 46 55 72 53 Expenditures 1,148 1,137 1,262 294 251 258 346 296 280 339 312 267 73 70 85 83 Capital account 187 157 371 62 141 -90 46 62 127 136 -39 -112 50 33 68 46 Financial account 1,042 2,377 1,772 603 745 476 569 557 478 168 476 291 3 416 103 156 Direct investment -47 -584 -1,238 -521 -365 186 -348 -45 -218 -628 -324 -258 -229 -196 31 44 Assets 24 155 278 51 -57 20 93 301 23 -140 143 19 -125 -6 126 6 Liabilities 71 739 1,516 571 308 -166 441 346 241 488 466 277 104 190 95 -38 Portfolio investment -4,176 -3,968 2,929 -1,204 76 264 689 1,684 -993 1,549 584 791 102 286 429 -662 Financial derivatives 32 -3 28 -9 2 7 22 5 -9 10 -7 -9 -3 0 10 -4 Other investment 5,227 6,843 166 2,328 1,106 22 226 -1,110 1,746 -697 212 -192 153 378 -354 742 Assets 632 4,815 -672 2,019 374 671 434 -1,478 1,225 -853 108 -582 -38 99 -245 567 Other equity 152 84 10 70 1 -1 10 1 0 -2 1 -1 0 0 0 0 Currency and deposits 564 5,037 -545 1,964 469 1,089 90 -1,272 1,273 -636 -272 -522 -4 62 -369 690 Loans 1 -299 -408 -48 -98 -75 -80 -224 -27 -78 10 -68 1 -30 1 -32 Insurance, pension schemes, and standardised guarantee schemes -10 8 -8 -3 -4 -2 12 -3 -15 -2 7 0 -1 -1 -1 -1 Trade credit and advances 19 -16 -4 83 -51 -252 341 27 -15 -357 314 118 -109 114 101 -30 Other assets -94 1 283 -46 57 -87 60 -7 8 222 49 -110 76 -46 22 -60 Liabilities -4,595 -2,028 -837 -309 -732 649 208 -369 -521 -156 -103 -390 -191 -278 109 -175 Other equity -29 7 1 2 0 0 0 0 1 0 0 0 0 0 0 0 Currency and deposits -4,169 -831 -400 -54 21 278 -178 -301 -37 116 441 -415 45 -52 16 -17 Loans -269 -1,246 -315 -297 -691 107 378 -82 -376 -235 -491 -114 -256 -270 -52 -70 Insurance, pension schemes, and standardised guarantee schemes 39 -54 3 -40 -2 -10 -7 4 2 4 10 0 -1 -1 -3 -3 Trade credit and advances -182 -144 -101 81 -46 36 9 3 -122 9 -78 150 -3 63 87 -31 Other liabilities 16 240 -25 -2 -13 238 5 7 12 -49 15 -12 23 -19 61 -54 Special drawing rights (SDR) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Reserve assets 5 89 -113 8 -74 -3 -20 23 -49 -67 10 -40 -20 -52 -14 38 Net errors and omissions -877 -105 -596 -56 -39 -16 88 33 -290 -428 -214 -366 -61 47 -262 20 EXPORTS AND IMPORTS BY END-USE OF PRODUCTS, in EUR m Export of investment goods 2,163 2,343 2,596 590 573 629 581 632 630 753 646 687 161 205 226 202 Intermediate goods 12,425 12,924 13,355 3,254 3,237 3,202 3,280 3,406 3,348 3,322 3,367 3,547 893 1,187 1,195 1,099 Consumer goods 6,960 7,668 7,989 1,874 1,887 2,134 2,003 2,040 1,904 2,042 2,059 2,179 475 750 729 707 Import of investment goods 2,573 2,774 2,968 696 635 796 658 713 720 877 722 816 182 223 267 272 Intermediate goods 13,635 13,417 13,803 3,364 3,366 3,403 3,453 3,541 3,376 3,432 3,332 3,542 974 1,204 1,200 1,195 Consumer goods 5,906 6,389 6,534 1,611 1,603 1,657 1,604 1,637 1,592 1,701 1,693 1,755 472 580 593 554 Source of data: BS, SURS. Note: The methodology of the Slovenian balance of payments and international investment position statistics follows the recommendations in the sixth edition of the Balance of Payments and International Investment Position Manual released by the International Monetary Fund. 2014 2015 2016 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 195 164 41 230 85 174 203 236 123 282 220 212 27 242 165 321 234 217 318 227 198 93 94 35 219 7 122 253 198 -5 231 183 172 -11 175 147 174 145 123 209 168 47 1,825 1,817 1,867 2,196 1,942 1,950 2,172 2,146 1,595 2,193 2,177 2,116 1,867 1,842 2,025 2,199 2,091 2,104 2,205 2,075 1,738 1,731 1,723 1,832 1,977 1,935 1,828 1,919 1,947 1,600 1,962 1,995 1,944 1,878 1,667 1,879 2,025 1,945 1,981 1,995 1,907 1,691 133 140 102 152 216 163 145 186 236 187 183 150 159 153 116 201 187 183 187 191 271 505 399 395 466 523 486 502 586 603 541 508 471 545 423 442 509 507 503 548 606 665 372 258 293 314 307 323 357 400 367 354 325 321 386 270 325 308 320 320 362 416 394 -3 -25 6 -95 -97 -60 -174 -103 -75 -106 -119 -67 -66 -65 -14 -2 -66 -52 -53 -76 -77 145 148 184 105 120 135 162 128 108 135 122 118 167 114 171 200 125 127 127 118 126 148 173 178 200 217 196 335 231 183 241 241 185 234 179 185 202 191 179 180 194 203 -29 -45 -102 -45 -41 -50 -22 -45 -33 -29 -27 -43 -54 -21 -84 -52 -32 -38 -25 -56 -43 62 46 53 54 61 53 70 61 53 59 76 60 78 55 52 48 61 54 57 59 55 90 91 156 100 102 103 92 106 85 89 103 103 132 76 136 100 93 91 83 115 99 -204 28 6 12 25 7 29 55 38 33 79 62 -5 -7 -17 -15 -35 -40 -37 -8 -17 217 539 -19 49 41 163 353 141 15 323 145 471 -448 247 152 77 -31 173 150 415 -90 111 1 -73 -276 -187 -26 169 -50 -76 -91 -387 -9 -232 -237 72 -159 -353 51 44 -25 -198 -112 63 59 -29 43 83 175 73 -56 7 67 -8 -199 26 72 44 16 18 -16 128 -120 -223 62 132 247 231 110 6 123 20 98 454 1 33 264 0 203 370 -34 -60 153 78 497 193 296 200 1,070 339 275 -1,044 -151 202 491 526 532 373 1,040 -829 477 197 116 321 301 2 -6 20 7 2 0 3 -3 -6 0 0 -3 14 -6 0 -1 6 0 -15 30 1 -366 326 -186 85 -800 -162 -148 1,229 271 246 19 1 -718 90 -988 1,110 -132 -78 17 108 -176 349 541 -213 107 -1,053 -153 -273 1,091 -141 275 170 187 -1,210 -118 -245 471 -975 38 355 -56 -944 -2 2 3 6 3 -2 0 0 1 0 0 0 -2 0 0 1 0 0 0 0 0 768 462 -343 -29 -863 -230 -179 1,093 32 148 111 176 -923 -117 -393 238 -891 132 237 -3 -736 -44 -8 -49 -22 -45 -18 -160 -4 -27 4 -20 -13 -45 -11 -22 43 -31 -38 2 -21 -19 -1 4 4 4 -1 -1 -1 -5 -5 -5 -1 -1 -1 2 2 2 0 0 0 0 0 -323 17 126 198 -84 65 45 14 -143 114 15 42 -414 71 117 125 -3 4 117 -34 -202 -49 63 46 -50 -63 33 22 -8 1 14 65 -18 175 -63 51 62 -50 -59 0 2 13 715 214 -28 22 -253 9 -125 -138 -412 29 151 185 -492 -207 743 -639 -844 116 337 -164 -768 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 278 -89 -65 -24 -112 -170 -18 63 13 -114 112 66 -62 -5 765 -320 -766 155 197 20 -418 230 664 -225 -61 3 175 -259 -58 -361 43 -37 167 -365 15 -256 -250 -87 -100 73 -107 -322 -3 -2 -2 -2 1 1 1 1 1 1 1 1 1 3 3 3 0 0 0 0 0 -21 -365 228 146 -168 23 148 -173 -31 81 45 -4 -32 -252 132 42 -1 76 76 -68 -135 231 7 36 -38 23 -20 4 29 -34 18 30 -44 -35 32 98 -115 11 -14 -8 -8 107 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -27 24 -76 32 -43 12 54 9 -23 -35 21 -43 -45 27 28 -45 -29 2 -13 -18 -18 225 346 -65 -193 -69 -19 121 -151 -146 7 -155 197 -470 12 4 -230 -230 -5 -131 196 -271 202 201 169 192 220 204 212 216 232 167 231 246 243 264 177 222 247 227 229 233 N/A 1,099 909 1,030 1,061 1,189 1,142 1,095 1,169 1,207 935 1,206 1,219 1,160 944 1,063 1,125 1,181 1,179 1,177 1,196 N/A 707 698 607 625 771 615 658 767 696 471 737 701 694 646 603 687 769 692 699 787 N/A 272 257 193 210 255 240 232 241 248 210 262 271 283 322 206 236 276 275 261 272 N/A 1,195 1,008 1,092 1,136 1,224 1,231 1,133 1,177 1,200 976 1,201 1,205 1,161 1,067 1,033 1,118 1,183 1,137 1,208 1,196 N/A 554 511 494 533 577 537 527 573 568 459 565 590 565 546 483 582 628 595 575 583 N/A MONETARY INDICATORS AND INTEREST RATES 2013 2014 2015 2014 2015 5 6 7 8 9 10 11 12 1 2 3 SELECTED CLAIMS OF OTHER MFI ON DOMESTIC SECTORS, end of the month, in EUR m Claims of the BS on central government 233 263 2,327 227 228 229 230 230 237 246 263 265 282 445 Central government (S. 1311) 6,563 7,240 7,112 6,262 6,296 6,459 6,512 6,581 6,936 7,010 7,240 7,443 7,502 7,163 Other government (S. 1312, 1313, 1314) 581 685 622 577 582 594 596 606 611 618 685 654 631 633 Households (S. 14, 15) 8,917 8,762 8,856 8,835 8,810 8,808 8,814 8,813 8,807 8,791 8,762 8,842 8,802 8,834 Non-financial corporations (S. 11) 14,902 11,729 10,502 14,429 14,039 13,867 13,764 13,586 12,603 12,511 11,729 11,823 11,726 11,674 Non-monetary financial institutions (S. 123, 124, 125) 1,763 1,485 1,432 1,929 1,921 1,881 1,858 1,873 1,665 1,654 1,485 1,463 1,455 1,642 Monetary financial institutions (S. 121, 122) 5,020 3,684 3,206 4,863 3,896 4,347 4,108 3,732 4,037 3,915 3,684 3,657 3,696 3,479 Claims on domestic sectors, TOTAL In domestic currency 29,620 25,155 23,816 29,017 27,756 28,005 27,645 27,220 26,425 26,191 25,155 25,232 25,179 24,885 In foreign currency 1,097 950 824 1,025 1,019 1,010 1,011 994 986 973 950 1,059 1,003 983 Securities, total 7,026 7,469 7,059 6,845 6,763 6,933 6,987 6,968 7,240 7,326 7,469 7,576 7,615 7,539 SELECTED OBLIGATIONS OF OTHER MFI ON DOMESTIC SECTORS, end of the month, in EUR m Deposits in domestic currency, total 27,051 25,843 25,885 27,067 26,577 27,060 26,869 26,318 26,492 26,309 25,843 25,930 25,800 25,389 Overnight 8,558 10,157 12,717 9,390 9,582 10,236 10,138 9,870 10,329 10,398 10,157 10,731 10,947 10,842 With agreed maturity – short-term 6,689 5,955 4,481 7,088 6,768 6,876 6,928 6,720 6,477 6,250 5,955 5,708 5,610 5,350 With agreed maturity – long-term 11,569 9,267 8,196 10,252 9,875 9,585 9,368 9,265 9,172 9,155 9,267 9,078 8,838 8,762 Short-term deposits redeemable at notice 235 464 491 337 352 363 435 463 514 506 464 413 405 435 Deposits in foreign currency, total 487 510 655 496 508 510 516 538 528 535 510 566 604 601 Overnight 324 354 508 336 350 345 354 354 348 353 354 401 447 442 With agreed maturity – short-term 91 84 80 92 90 96 92 115 110 110 84 86 77 81 With agreed maturity – long-term 72 72 67 68 68 69 70 69 70 72 72 79 80 78 Short-term deposits redeemable at notice 0 0 0 0 0 0 0 0 0 0 0 0 0 0 INTEREST RATES OF MONETARY FINANCIAL INSTITUTIONS, % New deposits in domestic currency Households Overnight deposits 0.11 0.07 0.04 0.08 0.08 0.07 0.07 0.07 0.07 0.06 0.06 0.05 0.05 0.05 Time deposits with maturity of up to one year 1.86 0.98 0.37 1.04 1.00 0.93 0.89 0.85 0.81 0.74 0.66 0.58 0.51 0.46 New loans to households in domestic currency Housing loans, 5-10 year fixed interest rate 5.40 5.06 3.54 5.23 4.84 5.2 5.01 5.09 4.65 4.72 4.38 4.17 4.85 3.34 New loans to non-financial corporations in domestic currency Loan over EUR 1 million, 1-5 year fixed interest rate 3.86 4.25 2.46 5.51 1.53 5.05 2.82 .. 4.66 3.07 4.50 3.89 2.40 3.39 INTEREST RATES OF THE EUROPEAN CENTRAL BANK, % Main refinancing operations 0.54 0.16 0.05 0.25 0.15 0.15 0.15 0.05 0.05 0.05 0.05 0.05 0.05 0.05 INTERBANK INTEREST RATES EURIBOR 3-month rates 0.221 0.210 -0.019 0.325 0.241 0.205 0.192 0.097 0.083 0.081 0.081 0.063 0.048 0.027 6-month rates 0.336 0.309 0.054 0.417 0.333 0.305 0.292 0.200 0.184 0.182 0.177 0.152 0.126 0.097 LIBOR 3-month rates 0.020 0.012 -0.755 0.016 0.012 0.013 0.020 0.008 0.008 0.006 -0.020 -0.466 -0.889 -0.802 6-month rates 0.080 0.066 -0.688 0.068 0.069 0.072 0.073 0.059 0.057 0.053 0.023 -0.403 -0.773 -0.707 Source of data: BS, EUROSTAT. 2015 2016 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 642 838 1,045 1,299 1,488 1699 1,942 2,175 2,327 2,539 2,759 2,987 3,144 3,378 3,631 3,861 4,012 4,219 7,368 7,380 7,387 7,449 7,445 7,301 7,380 7,387 7,112 7,212 6,957 7,022 6,739 6,853 6,813 6,861 6,850 6,873 633 633 635 634 631 624 623 618 622 630 614 601 602 594 591 589 587 571 8,826 8,847 8,836 8,821 8,812 8,825 8,873 8,857 8,856 8,815 8,789 8,830 8,863 8,891 8,920 8,892 8,930 8,973 11,569 11,493 11,396 11,190 11,137 10,941 10,819 10,688 10,502 10,527 10,046 9,904 9,953 9,870 9,771 9,706 9,520 9,455 1,519 1,511 1,466 1,470 1,405 1,435 1,417 1,411 1,432 1,422 1,328 1,397 1,326 1,332 1,298 1,298 1,283 1,310 3,353 3,365 3,007 3,181 3,442 3,312 3,904 3,713 3,206 3,574 4,030 3,318 3,727 3,572 3,240 3,578 3,625 3,610 24,707 24,661 24,240 24,316 24,469 24078 24,532 24,226 23,789 24,152 24,088 23,407 23,796 23,552 23,026 23,272 23,149 23,171 957 955 937 904 874 845 839 839 823 794 802 778 758 751 759 743 717 714 7,566 7,574 7,512 7,486 7,494 7,478 7,606 7,568 7,079 7,178 6,795 6,812 6,580 6,735 6,777 6,836 6,848 6,823 25,884 25,894 25,715 25,974 26,073 25,652 26,330 26,442 25,885 26,315 26,067 25,869 25,689 25,697 25,364 25,725 25,646 25,612 11,200 11,458 11,533 12,080 12,278 12,130 12,991 13,244 12,717 13,255 13,553 13,405 13,504 13,668 13,819 14,274 14,478 14,365 5,302 5,217 5,032 4,896 4,743 4,664 4,341 4,325 4,481 4,393 4,251 4,174 3,984 3,942 3,777 3,697 3,507 3,571 8,916 8,707 8,574 8,411 8,513 8,349 8,410 8,322 8,196 8,148 7,702 7,595 7,572 7,390 7,110 7,077 7,040 7,047 466 512 576 587 539 509 588 551 491 519 561 695 629 697 658 677 621 629 585 612 620 616 616 623 618 651 655 674 687 686 658 684 708 683 686 705 433 464 469 468 475 484 478 498 508 529 544 550 529 553 561 540 550 565 75 71 77 73 69 71 71 82 80 79 78 75 69 70 86 82 75 81 77 77 74 75 72 68 69 71 67 66 65 61 60 61 61 61 61 59 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.05 0.05 0.05 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.39 0.37 0.36 0.31 0.33 0.31 0.28 0.28 0.28 0.25 0.25 0.24 0.20 0.20 0.19 0.20 0.21 3.49 3.5 3.39 3.38 3.36 3.34 3.39 3.14 3.16 3.06 2.91 2.75 2.71 2.57 2.54 2.62 2.45 4.58 .. .. 1.90 .. 0.81 1.71 .. 1.00 0.75 .. 1.85 2.58 3.84 2.16 .. .. 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.005 -0.010 -0.014 -0.019 -0.028 -0.037 -0.054 -0.088 -0.126 -0.146 -0.184 -0.229 -0.249 -0.257 -0.268 -0.295 -0.298 -0.302 0.073 0.057 0.049 0.049 0.044 0.035 0.020 -0.015 -0.040 -0.061 -0.115 -0.134 -0.138 -0.145 -0.162 -0.188 -0.189 -0.199 -0.812 -0.791 -0.782 -0.762 -0.729 -0.729 -0.728 -0.784 -0.792 -0.752 -0.775 -0.760 -0.727 -0.734 -0.763 -0.766 -0.743 -0.741 -0.727 -0.704 -0.711 -0.710 -0.681 -0.672 -0.674 -0.754 -0.737 -0.685 -0.723 -0.698 -0.653 -0.646 -0.676 -0.688 -0.658 -0.647 PUBLIC FINANCE 2013 2014 2015 2014 2015 2016 2015 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1 2 CONSOLIDATED BALANCE OF PUBLIC FINANCING (GFS–IMF methodology), current prices, EUR m GENERAL GOVERNMENT REVENUES TOTAL REVENUES 14,728.2 15,492.0 15,714.1 3,905.1 3,686.5 4,268.4 3,635.8 3,972.6 3,864.3 4,241.4 3,685.5 4,108.3 1,312.5 1,075.2 Current revenues 13,637.4 14,377.0 14,702.6 3,695.2 3,501.4 3,770.7 3,413.6 3,756.8 3,596.3 3,935.9 3,511.5 3,948.3 1,276.7 998.9 Tax revenues 12,648.4 13,191.6 13,746.4 3,317.0 3,237.5 3,491.3 3,252.4 3,524.1 3,277.4 3,692.4 3,344.3 3,659.7 1,221.6 945.9 Taxes on income and profit 2,137.4 2,385.9 2,584.6 686.3 466.3 637.7 601.7 786.4 504.0 692.5 634.2 811.4 207.6 202.6 Social security contributions 5,127.2 5,272.5 5,473.9 1,302.5 1,300.7 1,365.3 1,339.5 1,353.4 1,357.7 1,423.3 1,395.1 1,423.5 454.6 440.4 Taxes on payroll and workforce 23.4 20.2 19.7 5.3 4.7 5.4 4.5 4.9 4.6 5.6 4.8 5.1 1.6 1.4 Taxes on property 254.1 244.2 237.8 29.3 100.3 96.2 26.9 41.7 85.2 84.1 27.2 46.3 11.1 10.0 Domestic taxes on goods and services 5,027.4 5,191.2 5,347.1 1,300.1 1,350.5 1,369.7 1,246.0 1,322.2 1,305.9 1,473.1 1,233.7 1,365.4 504.8 361.2 Taxes on international trade & transactions 77.5 77.7 82.5 19.0 18.5 21.1 21.3 21.5 20.2 19.6 22.3 19.8 5.9 6.2 Other taxes 1.3 -0.2 0.6 -25.7 -3.5 -4.1 12.5 -6.0 -0.2 -5.8 27.0 -11.7 36.0 -76.0 Non-tax revenues 989.0 1,185.4 956.2 378.2 264.0 279.4 161.2 232.7 318.8 243.5 167.2 288.6 55.1 53.0 Capital revenues 67.1 51.4 96.3 10.5 13.1 17.8 10.8 16.2 26.2 43.2 14.7 17.5 3.3 3.7 Grants 32.7 18.9 12.2 11.0 4.3 2.3 2.3 1.7 4.7 3.4 1.3 1.8 0.4 0.8 Transferred revenues 52.7 4.5 20.6 0.4 0.5 2.4 1.2 0.3 19.3 -0.2 0.7 0.0 0.1 0.0 Receipts from the EU budget 938.4 1,040.3 882.4 188.0 167.2 475.2 207.9 197.5 217.9 259.1 157.3 140.8 32.0 71.6 GENERAL GOVERNMENT EXPENDITURES TOTAL EXPENDITURES 16,286.4 16,751.2 16,956.4 3,957.1 4,009.3 4,498.5 4,290.6 3,980.9 3,974.9 4,710.0 4,223.2 3,882.3 1,422.5 1,402.6 Current expenditures 6,838.4 7,042.1 7,168.4 1,692.4 1,581.3 1,845.9 1,969.7 1,678.3 1,608.5 1,912.0 1,977.9 1,774.4 637.9 619.2 Wages, salaries and other personnel expenditures 3,616.7 3,610.4 3,610.2 908.4 883.3 898.9 923.7 903.4 875.0 908.2 924.5 969.8 316.0 303.1 Expenditures on goods and services 2,238.9 2,232.3 2,311.2 538.8 546.9 615.6 502.5 558.9 546.1 703.7 536.4 553.5 154.5 147.4 Interest payments 840.1 1,097.4 1,042.6 221.9 131.0 292.6 497.2 178.4 148.0 218.9 489.5 181.5 142.8 159.3 Reserves 142.6 102.1 204.4 23.3 20.1 38.9 46.2 37.6 39.5 81.1 27.5 69.6 24.7 9.4 Current transfers 7,671.3 7,591.9 7,540.1 1,848.4 1,883.4 1,876.1 1,936.5 1,863.9 1,899.4 1,840.3 1,974.0 1,896.3 676.1 619.9 Subsidies 519.5 467.4 399.0 80.3 71.3 110.2 201.2 79.1 47.7 71.0 186.4 78.5 78.3 103.0 Current transfers to individuals and households 6,343.1 6,335.0 6,370.8 1,600.0 1,621.1 1,552.3 1,564.2 1,592.7 1,657.7 1,556.2 1,604.7 1,619.4 515.8 516.7 Current transfers to non-profit institutions, other current domestic transfers 734.2 714.3 713.8 147.7 173.2 188.8 156.5 180.5 186.0 190.7 167.5 179.3 75.7 -3.8 Current transfers abroad 74.4 75.2 56.5 20.4 17.8 24.7 14.5 11.6 8.1 22.3 15.4 19.2 6.3 4.0 Capital expenditures 1,031.8 1,444.4 1,520.0 269.8 414.6 578.2 175.3 285.2 350.4 709.1 98.6 115.4 63.9 43.5 Capital transfers 319.5 270.0 295.0 50.7 67.9 116.2 37.9 58.7 60.8 137.5 32.9 26.9 10.3 17.0 Payments to the EU budget 425.5 402.9 432.9 95.9 62.2 82.1 171.1 94.8 55.8 111.2 139.9 69.3 34.3 102.9 SURPLUS / DEFICIT -1,558.2 -1,259.2 -1,242.3 -52.0 -322.8 -230.0 -654.8 -8.4 -110.6 -468.6 -537.7 226.1 -110.0 -327.4 Source of data: Bulletin of Government Finance. Note: In line with the changed methodology of the International Monetary Fund of 2001, social security contributions paid by the general government are not consolidated. 2015 2016 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 1,248.1 1,440.0 1,197.2 1,335.3 1,310.4 1,325.9 1,227.9 1,429.6 1,388.0 1,423.9 1,329.1 1,178.8 1,177.5 1,352.7 1,391.5 1,364.1 1,161.0 1,390.6 1,138.0 1,327.2 1,151.4 1,278.2 1,199.6 1,260.8 1,135.8 1,367.4 1,245.3 1,323.2 1,234.0 1,132.1 1,145.4 1,299.8 1,297.5 1,351.0 1,152.4 1,382.0 1,084.9 1,272.4 1,036.3 1,215.5 1,087.8 1,153.6 1,036.0 1,287.9 1,178.2 1,226.3 1,176.4 1,080.9 1,086.9 1,244.9 1,217.0 1,197.8 1,096.1 1,233.4 191.5 323.0 187.7 275.7 81.3 210.2 212.5 206.9 228.6 257.0 214.8 212.6 206.8 219.0 289.0 303.4 63.8 270.6 444.5 455.0 449.0 449.4 456.2 451.3 450.3 453.5 457.4 512.4 465.0 460.6 469.4 473.5 478.6 471.4 482.7 461.3 1.5 1.8 1.4 1.7 1.8 1.3 1.5 2.0 1.6 2.0 1.7 1.7 1.5 1.5 1.8 1.8 1.7 1.6 5.8 9.0 11.9 20.9 25.5 29.4 30.3 32.8 30.3 21.0 11.6 9.0 6.6 6.2 12.0 28.1 29.7 35.1 379.9 482.1 375.3 464.8 517.4 443.3 345.1 582.2 454.4 436.5 462.9 393.8 376.9 469.4 502.9 393.0 507.2 472.8 9.1 8.0 6.7 6.8 7.0 6.6 6.5 7.3 5.8 6.5 6.7 7.7 7.9 7.2 6.2 6.4 5.5 7.8 52.5 -6.5 4.2 -3.7 -1.4 11.4 -10.2 3.3 0.0 -9.1 13.7 -4.5 17.8 68.0 -73.4 -6.3 5.5 -15.9 53.1 54.8 115.1 62.7 111.8 107.3 99.7 79.5 67.1 96.9 57.5 51.2 58.5 54.9 80.5 153.2 56.3 148.6 3.8 4.5 4.2 7.5 11.1 6.7 8.3 9.6 19.9 13.6 4.8 6.0 3.9 6.5 4.7 6.3 7.1 5.6 1.1 1.1 0.2 0.4 0.3 0.5 3.9 0.1 0.7 2.6 0.2 0.3 0.8 0.6 0.9 0.2 0.3 1.3 1.1 0.1 0.1 0.1 19.1 0.1 0.1 0.1 -0.5 0.2 0.0 0.0 0.7 0.0 0.0 0.0 0.0 0.0 104.2 107.1 41.3 49.1 80.2 57.8 79.9 52.3 122.5 84.3 90.2 40.4 26.8 45.8 88.4 6.6 1.2 1.7 1,465.5 1,335.7 1,296.4 1,348.8 1,406.9 1,263.5 1,304.6 1,439.9 1,410.3 1,859.8 1,302.6 1,416.7 1,504.0 1,259.9 1,306.9 1,315.5 1,374.6 1,313.6 712.6 573.6 546.3 558.3 529.9 525.5 553.1 634.1 574.1 703.9 617.6 641.3 719.0 575.1 592.2 607.1 548.1 598.0 304.6 287.1 290.1 326.2 295.9 287.5 291.5 296.1 296.5 315.6 305.6 308.1 310.9 299.3 305.0 365.4 309.1 313.3 200.6 179.7 165.6 213.6 200.0 172.4 173.7 181.7 190.2 331.9 157.9 178.5 200.0 167.9 198.1 187.5 183.5 205.4 195.2 97.8 73.4 7.1 22.5 52.7 72.8 141.5 72.5 5.0 143.6 145.0 200.9 98.2 77.5 5.7 45.0 69.7 12.1 9.0 17.2 11.4 11.6 12.9 15.0 14.8 14.9 51.4 10.5 9.7 7.3 9.6 11.5 48.5 10.4 9.6 640.5 614.0 617.0 632.9 728.3 584.5 586.6 581.8 601.2 657.3 615.9 654.7 703.4 621.6 642.4 632.3 717.6 602.0 19.9 10.9 29.5 38.7 17.8 14.4 15.5 14.0 15.6 41.4 30.6 54.2 101.7 12.4 46.2 19.9 10.4 11.2 531.7 542.4 520.7 529.6 636.7 510.8 510.1 507.5 517.8 531.0 529.0 534.0 541.6 542.2 535.1 542.2 635.2 528.0 84.7 56.0 62.1 62.4 71.4 58.4 56.2 57.8 54.1 78.8 47.4 63.7 56.4 55.0 56.9 67.4 66.4 61.9 4.2 4.6 4.8 2.2 2.4 0.8 4.8 2.5 13.8 6.1 8.9 2.8 3.7 12.1 4.1 2.9 5.6 0.8 67.9 93.1 83.3 108.8 116.0 111.6 122.8 166.9 153.2 389.0 25.8 34.3 38.5 33.2 37.3 45.0 70.4 75.7 10.6 20.3 14.4 24.1 16.0 16.6 28.2 29.7 40.7 67.1 9.8 14.4 8.7 9.4 5.9 11.6 7.5 6.6 33.9 34.7 35.4 24.8 16.6 25.3 13.8 27.5 41.2 42.5 33.6 71.9 34.4 20.6 29.2 19.5 30.9 31.3 -217.4 104.4 -99.2 -13.6 -96.5 62.5 -76.6 -10.4 -22.3 -435.9 26.5 -237.9 -326.4 92.8 84.7 48.6 -213.6 77.0 Acronyms Acronyms in the text AJPES – Agency of the Republic of Slovenia for Public Legal Records and Related Services, BAMC -Bank Asset Management Company, BoS – Bank of Slovenia, CPI – Consumer Price Index, DV – Value added, EBA - European Banking Authority, EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization, ECB – European Central Bank, EIA – Energy Information Administration, EK – European Commission, ESI – Economic Sentiment Indicator, ESS – Employment Service of Slovenia, EU – European Union, EUR – Euro, EUROSTAT – Statistical Office of the European Union, FED – Federal Reserve System, HICP –Harmonised Index of Consumer Prices, IC – Interest Coverage, ICT – Information and Communication Technology, IEA – International Energy Agency, IMAD – Institute of Macroeconomic Analysis and Development, IMF – International Monetary Fund, MF – Ministry of Finance, MGRT – Ministry of Economic Developement and Technology, MSP – micro, small and medium-sized enterprises. MZI – Ministry of Infrastructure, NFI – Non-monetary Financial Institutions, OPEC – Organization of Petroleum Exporting Countries, PDII – Pension and Disability Insurance Institute, PMI – Purchasing Managers Index, PPI – Producer Price Index, RS – Republic of Slovenia, SITC – Standard International Trade Classification, SKD – Standard Classification of Activities, SMA – Securities Market Agency, SRE – Statistical Register of Employment, SURS – Statistical Office of the Republic of Slovenia, TSA – Treasury Single Account, UL – Official Gazette , ULC – Unit Labour Costs, USD – US Dollar, VAT – value added tax. Acronyms of Standard Classification of Activities A – Agriculture, forestry and fishing, B – Mining and quarrying, C – Manufacturing, 10 – Manufacture of food products, 11 – Manufacture of beverages, 12 – Manufacture of tobacco products, 13 – Manufacture of textiles, 14 – Manufacture of wearing apparel, 15 – Manufacture of leather and related products, 16 – Manufacture of wood and of products of wood and cork, except furniture, manufacture of articles of straw and plaiting materials, 17 – Manufacture of paper and paper products, 18– Printing and reproduction of recorded media, 19– Manufacture of coke and refined petroleum products, 20– Manufacture of chemicals and chemical products, 21 – Manufacture of basic pharmaceutical products and pharmaceutical preparations, 22 – Manufacture of rubber and plastic products, 23 – Manufacture of other non-metallic mineral products, 24 – Manufacture of basic metals, 25 – Manufacture of fabricated metal products, except machinery and equipment, 26 – Manufacture of computer, electronic and optical products, 27 – Manufacture of electrical equipment, 28 – Manufacture of machinery and equipment n.e.c., 29– Manufacture of motor vehicles, trailers and semi-trailers, 30– Manufacture of other transport equipment, 31 – Manufacture of furniture, 32 – Other manufacturing, 33 - Repair and installation of machinery and equipment, D– Electricity, gas, steam and air conditioning supply, E– Water supply sewerage, waste management and remediation activities, F – Construction, G – Wholesale and retail trade, repair of motor vehicles and motorcycles, H – Transportation and storage, I – Accommodation and food service activities, J – Information and communication, K – Financial and insurance activities, L – Real estate activities, M – Professional, scientific and technical activities, N – Administrative and support service activities, O – Public administration and defence, compulsory social security, P – Education, Q – Human health and social work activities, R – Arts, entertainment and recreation, S – Other service activities, T – Activities of households as employers, undifferentiated goods- and services- producing activities of households for own use, U – Activities of extraterritorial organizations and bodies. Acronyms of Countries AT-Austria, BA-Bosnia and Herzegovina, BE-Belgium, BG-Bulgaria, BY-Belarus, CH-Switzerland, HR-Croatia, CZ-Czech Republic, CY-Cyprus, DE-Germany, DK-Denmark, ES-Spain, EE-Estonia, GR-Greece, FR-France, FI-Finland, HU-Hungary, IE-Ireland, IL-Israel, IT-Italy, JP-Japan, LU-Luxembourg, LT-Lithuania, LV-Latvia, MT-Malta, NL-Netherlands, NO-Norway, PL-Poland, PT-Portugal, RO-Romania, RS-Republic of Serbia, RU-Russia, SE-Sweden, SI-Slovenia, SK-Slovakia, TR-Turkey, UA-Ukraine, UK-United Kingdom, US-United States of America. No. 7, Vol. XXII, 2016