.^'IMAD O fü Q) £ u £ o o Ü) o u 0) X X cB fN fO .Q cu Slovenian Economic Mirror ISSN 1318-3826 No. 2 / Vol. XXI / 2015 Publisher: IMAD, Ljubljana, Gregorčičeva 27 Responsible Person: Boštjan Vasle, MSc, Director Editor in Chief: Tina Nenadič, MSc Authors of Current Economic Trends (listed alphabetically): Jure Brložnik, Janez Dodič, Marjan Hafner, MSc, Matevž Hribernik, Slavica Jurančič; Mojca Koprivnikar Šušteršič, Tanja Kosi Antolič, PhD, Janez Kušar, Jože Markič, PhD, Tina Nenadič, MSc, Mitja Perko, MSc, Jure Povšnar, Ana T. Selan, MSc, Dragica Šuc, MSc, Miha Trošt Editorial Board: Marijana Bednaš, MSc, Lejla Fajič , Alenka Kajzer, PhD, Rotija Kmet Zupančič, MSc, Janez Kušar, Boštjan Vasle, MSc Translator: Marija Kavčič Data Preparation and Graphs: Bibijana Cirman Naglič, Marjeta Žigman Concept and Design: Katja Korinšek, Pristop DTP: Bibijana Cirman Naglič Print: SURS 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..................................................................................................................................................................12 Prices..................................................................................................................................................................................14 Balance of payments.......................................................................................................................................................15 Financial markets.............................................................................................................................................................17 Public finance....................................................................................................................................................................19 Boxes Box 1: GDP in 2014.............................................................................................................................................................9 Box 2: Revision of the state budget for 2015....................................................................................................................20 Box 3: Drawing of Cohesion Policy funds.........................................................................................................................22 Statistical appendix.....................................................................................................................................................25 On 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, which includes the entire European classification of activities but also adds some national subclasses, came into force on the mentioned date. In the Slovenian Economic Mirror, all analyses are based on the SKD 2008, except when the previous SKD 2002 classification is explicitly referred to. More general information about the introduction of the new classification is available on the SURS website http://www.stat.si/eng/ skd nace 2008.asp. All seasonally adjusted data in the Economic Mirror are calculations by IMAD. In the spotlight Economic activity in the euro area strengthened slightly further at the end of last year; the European Commission raised somewhat its growth forecasts for this year and next. According to Eurostat's flash estimate, economic activity rose by 0.3% in the last quarter (seasonally adjusted) and was 0.9 % higher year-on-year. Higher-than-expected growth was recorded by most of Slovenia's trading partners, particularly Germany. In its winter forecast, the Commission improved slightly its expectations regarding euro area GDP growth for this year and 2016 (by 0.2 percentage points to 1.3% and 1.9%, respectively). Growth will continue to be driven by net exports, alongside the rising contributions of private consumption and investment, particularly in machinery and equipment. After two years of decline, in 2014, Slovenia's GDP saw the strongest growth since the beginning of the crisis, primarily owing to the strengthening export growth; domestic consumption also rose for the first time since 2008. In the last quarter of 2014, economic activity continued to recover (0.3%, seasonally adjusted); in 2014, GDP was 2.6% higher year-on-year. Export growth, the key driver of the recovery, accelerated, which is explained by the increased competitiveness in the Slovenian tradable sector and some major export transactions in the last period. Domestic consumption expanded for the first time since the start of the crisis, boosted by stronger investment activity in particular; after two years of substantial decline, household consumption was also up amid the recovering labour market conditions. Despite relatively strong GDP growth in 2014, Slovenia remains in the group of countries with the largest declines in economic activity during the crisis. The labour market situation continues to improve; gross earnings per employee were up in 2014. The number of employed increased further in the final quarter of 2014 (seasonally adjusted). In 2014 as a whole, it was up year-on-year in most activities. The number of registered unemployed continued to decline at the beginning of this year (seasonally adjusted). In February, it stood at 122,552, down 5.6% on the previous February. In 2014, gross earnings per employee increased further in the private sector (1.4%), being also higher in the public sector (0.9%) for the first time since 2011. A significant contribution to growth came from the increase in the general government, which was mainly attributable to the payment of the suspended promotions of public servants in April. Earnings in public corporations were up again. Consumer prices remained lower year-on-year in February (-0.4 %). The main factor contributing to deflation was lower prices of unprocessed food and energy; prices of durables also fell slightly. Services prices, on the other hand, were higher. According to Eurostat's flash estimate, prices in the euro area also remained lower in year-on-year terms (-0.3 %). The stock of loans to all domestic non-banking sectors rose in January; the quality of bank claims improved at the end of the year, mainly due to the transfer of claims to the BAMC. Housing loans to households were up, in our estimation as a result of the appreciation of the CHF against the EUR. Growth in the stock of corporate and NFI loans reflected higher lending activity, which is otherwise typical for January. Household deposits (overnight deposits in particular) and government deposits rose further at the beginning of this year. Corporate and NFI deleverage abroad continued in 2014, while debt repayments by banks dropped by half. The stock of non-performing claims shrank by EUR 1.1 bn in 2014, the main reason being a further transfer of claims to the BAMC. At the end of the year, non-performing claims accounted for 11.9% of the banking system's total claims, 1.5 percentage points less than in 2013. Banks created around EUR 600 m in additional impairments and provisions in 2014, the smallest figure since 2009. In 2014, the general government deficit narrowed by EUR 299.0 m to EUR 1.259 bn or 3.4% of GDP. General government revenue increased 5.2% or EUR 764 m. More than half of the increase was due to higher revenues from taxes - particularly corporate income tax, value added tax and personal income tax. As a result of one-off factors in the first half of the year, non-tax revenues increased by a fifth. Payments of social security contribution and receipts from the EU budget were also up. The 2.9% growth of general government expenditure (EUR 465 m) was mainly accounted for by higher capital expenditure and interest payments; expenditure on pensions was also slightly higher in 2014. ■o £ Ol E o £ 0 u 01 £ 01 3 U International environment The weak recovery of economic activity in the euro area continued in the last months of 2014. According to Eurostat's second estimate, economic activity rose by 0.3% in the last quarter (seasonally adjusted) and was 0.9% higher year-on-year. Growth was mainly driven by increasing private consumption and exports; the slightly higher GDP growth than projected by the European Commission in February was mainly the result of strong growth in Germany (0.7%; forecast: 0.3%). Looking at Slovenia's other main trading partners in the euro area, in France and Italy the recovery remained weak, while in Austria economic activity declined. After the decline in 2013, euro area GDP rose by 0.9% last year. The improvement of some confidence indicators (Ifo, PMI, ESI) in the last few months indicates a continuation of weak economic growth at the beginning of this year. Figure 1: Economic growth in Slovenia's main trading partners ■ Q1 14 ■Q2 14 ■Q3 14 ■Q4 14 -Q4 14EC forecast 1.0 a -0.2 -0.4 EMU Germany France Italy Austria Source: Eurostat, EC Forecast (Febrauray 2015). In its winter forecast, the European Commission improved slightly its expectations and predicted a further acceleration of economic activity in the euro area. It forecasts 1.3% GDP growth for this year and 1.9% growth for next, which is 0.2 percentage points more for both years than expected in the autumn. According to the Commission's revised forecast, the main factors of growth will be lower oil prices, the depreciation of the euro, the ECB's measures and the implementation of the Investment Plan. In both years, the strengthening will be underpinned by stronger growth in private consumption.1 Furthermore, lower energy prices and more favourable lending conditions will also have a favourable impact on corporate investment.2 Exports will expand further due to higher 1 Private consumption growth will be a consequence of a further improvement in labour market conditions, increasing household real disposable income as a result of lower energy prices, higher earnings and low inflation. 2 This year, investment growth will be also fuelled by the need to replace external demand, but owing to increased imports, net exports will make a smaller contribution to GDP growth than in previous years. The downside risks to growth remain similar to those in the autumn - geopolitical risks,3 elevated uncertainties on financial markets over the developments in Greece and low inflation in the euro area. Stalling or partial implementation of structural, fiscal and institutional reforms at Member States or European level remain a risk. However, low oil prices, higher growth in emerging market economies and the ECB's unconventional measures could have a more favourable effect on euro area GDP growth than expected now. Table 1: Comparison of GDP growth forecasts by international institutions for 2016 and 2015 2015 2016 OECD IMF EK CONS OECD IMF EK CONS Nov 14 Jan 15 Feb 15 Feb 15 Nov 14 Jan 15 Feb 15 Feb 15 EMU 1.1 1.2 1.3 1.2 1.7 1.7 1.4 1.9 EU N/A N/A 1.7 1.6 N/A 2.0 N/A 2.1 DE 1.1 1.3 1.5 1.5 1.8 1.8 1.5 2.0 IT 0.2 0.4 0.6 0.5 1.0 1.0 0.8 1.3 AT 0.9 N/A 0.8 1.2 1.6 1.5 N/A 1.5 FR 0.8 0.9 1.0 0.9 1.5 1.5 1.3 1.8 UK 2.7 2.7 2.6 2.7 2.5 2.5 2.4 2.4 US 3.1 3.6 3.5 3.2 3.0 3.0 3.3 3.2 Source: OECD Economic Outlook (November 2014), IMF World Economic Outlook Update (January 2015), European Economic Winter Forecast 2015 (February 2015), Consensus Forecasts (February 2015). Note: N/A - not available. Oil prices soared in February after seven months of decline. After the strong increase at the beginning of the month, the dollar price of Brent oil eased to around USD 60 per barrel by the end of the month. In the month as a whole, Figure 2: Prices of Brent crude oil and the USD/EUR exchange rate -Price in EUR (left axis) -Price in USD (left axis) -USD to EUR exchange rate (right axis) 130 120 110 100 "iü 90 80 ^ 70 ID 60 50 40 30 Source: ECB, EIA; calculations by IMAD. 1.60 1.55 1.50 1.45 1.40 'ä^ ZD 1.35 iS ca ID 1.30 1.25 1.20 1.15 1.10 an ageing capital stock and increase profit margins, while for 2015, the Commission expects a positive effect of the Investment Plan. 3 The Russia-Ukraine conflict. it was up more than 20%; given the depreciation of the euro against the US dollar, the euro price rose even more, by almost 25%. Despite the largest average monthly increase in the past 15 years, oil prices in February were still almost half lower than in June 2014. According to IMF data, dollar prices of non-energy commodities continued to fall in January (down 3.1%), but according to preliminary data, these prices were also up in February. Figure 3: Non-energy commodity prices in dollars -Non-energy commodities -Metals ------Food 210 150 130 \ A 1 "A \ fsL^y // ^ Source: IMF. The yields of 10-year bonds of most euro area countries are declining. In anticipation of the ECB's new measures for stabilising inflation, they fell to all-time lows in February. At the end of February, the yield to maturity of the Slovenian euro bond reached the lowest level since Slovenia's entry into the euro area (1.16%); the spread Figure 4: Yields to maturity of ten-year government bonds Slovenia -Portugal -Spain -Italy ----Ireland ----Germany ----Austria 18 16 14 12 o .Q 10 ji 8 il6 " 4 against the benchmark Bund also narrowed significantly (to 82 basis points). The yields of bonds with a shorter maturity,4 which are also declining, fell into negative territory in some euro area countries.5 Table2: Indicators related to the international environment average change, in %* 2014 I 15 II 15 II 15/ I 15 II 15/ II 14 Brent USD, per barrel 98.93 47.76 58.10 21.6 -46.6 Brent EUR, per barrel 74.47 42.80 51.96 21.4 -34.6 EUR/USD 1.239 1.162 1.135 -2.3 -16.9 3-month EURIBOR, in % 0.209 0.063 0.048 -1.5 -24.0 Source: EIA, ECB Euribor; calculations by IMAD. Note: * in Euribor change in basis points. Economic developments in Slovenia Real merchandise exports continued to expand in the last quarter of 2014, while imports declined after rising in previous quarters (seasonally adjusted).6 Further export growth (1.8%) was mainly due to developments in December; it arose from continued expansion of exports to the EU, with exports to outside the EU also rising slightly after falling in the previous two quarters. Stronger export growth in 2014 (7.2%) is attributable to increased external demand, greater export competitiveness and some one-off factors (increased exports of new car models). Real merchandise imports otherwise shrank in the last quarter (-0.9%), but with stronger growth in exports and the recovery of domestic consumption, their growth also strengthened in 2014 overall (3.8%). Figure 5: Merchandise trade - real Source: Bloomberg; calculations by IMAD. 4 5-year government bonds. 5 Germany, Austria, the Netherlands, Finland. 6 According to the National Accounts Statistics. 2 Box 1: GDP in 2014 Economic activity continued to recover in the last quarter of 2014: after two years of decline, in 2014, GDP recorded the strongest growth since the beginning of the crisis primarily owing to expanding exports; domestic consumption also rose for the first time since 2008. GDP increased by 0.3% in the last quarter of 2014 (seasonally adjusted) and was 2.4% higher year-on-year. The main driver of its year-on-year growth remained exports, whose growth strengthened further year-on-year, while the recovery of domestic consumption came to a halt mainly due to a decline in construction investment. In 2014 as a whole, economic growth was the highest since 2008, at 2.6%. The recovery is attributable to the improvement in the international environment and on financial markets, greater cost competitiveness and domestic economic policy measures, particularly banking system restructuring and stronger government investment activity. With last year's strengthening of export growth - one of the largest in the EU - exports are the only consumption aggregate that exceeds the level of 2008. Domestic consumption rose in 2014 for the first time since the start of the crisis, boosted primarily by stronger investment activity (particularly in public infrastructure in connection with the accelerated absorption of EU funds prior to the expiry of the previous financial perspective). Positive trends were also observed in private investment in machinery and equipment. After two years of substantial decline, household consumption also increased last year with the recovery on the labour market, while government consumption fell for the fourth consecutive year due to the ongoing fiscal consolidation. Despite the relatively strong GDP growth in 2014, Slovenia remains in the group of countries with the largest declines in economic activity during the crisis. Figure 6: GDP level in Slovenia and its main trading partners —•—Slovenia -Germany -------France ---Italy -Austria -------Croatia 106 104 E? 102 8B 100 CD 98 T3 96 94 92 !S 90 88 86 cS a a a Source: Eurostat; calculations by IMAD. Figure 7: GDP expenditure structure, Slovenia Private consumption Government consumption Gross fixed capital formation ^ IHIIII Change in inventories and valuables Exports of goods and services n Imports of goods and services 0 a Source: SURS. Table 3: Selected indicators of economic activity in Slovenia in % 2013 XII 14/ XI 14 XII 14/ XII 13 I-XII 14/ I-XII 13 Merchandise exports, real1 2.5 2.83 12.3 7.1 Merchandise imports, real1 0.5 -2.73 4.5 3.9 Services exports, nominal2 5.6 6.03 8.9 2.9 Services imports, nominal2 1.4 0.53 0.5 7.4 Industrial production, real -0.9 0.83 0.14 1.64 -manufacturing -1.5 1.83 4.44 3.54 Construction -value of construction put in place, reasl -2.6 -1.53 4.6 19.4 Real turnover in retail trade -3.7 -0.33 -1.7 -0.3 Nominal turnover in market services (without trade) -0.3 1.33 1.2 2.6 Sources: BoS, Eurostat, SURS; calculations by IMAD. Notes: 1External trade statistics; deflated by IMAD, 2balance of payments statistics, 3seasonally adjusted, 4working-day adjusted data. Nominal exports and Imports of services rose modestly in the last quarter of 2014 (seasonally adjusted).7 Export growth (1.8%) was mainly the result of further growth in other business services; exports of travel and transport services were also up, while exports of the group of other services8 declined substantially again. After the decline in the preceding quarter, nominal imports of services rose slightly, in particular imports of travel services and the group of other services, while imports of other business services dwindled. Growth in nominal exports of services moderated in 2014 (2.9%), while import 7 Balance of payments statistics. 8 When adjusting data for seasonal effects, we placed communication, construction, financial, computer and information activities, personal service activities, arts, entertainment and recreation activities, government services, insurances and licences, patents and copyrights into the group of other services. Together, they account for almost a fifth of services exports and nearly a third of services imports. Figure 8: Trade in services - nominal -Exports -Imports 1,500 1,400 a a a a Source: BoS; calculations by IMAD. growth strengthened considerably primarily owing to the increase at the beginning of the year (7.4%). Production volume in manufacturing continued to rise in the last quarter of 2014. The main contribution to growth once again came from industries of higher technology intensity, where output growth picked up appreciably in the second half of the year. Production in medium-low-technology industries fell somewhat at the end of 2014 but remained higher than a year earlier. Production in low-technology industries remained at a low but also slightly higher level year-on-year (seasonally adjusted). Gradually recovering, production volume in industries of higher technology intensity surpassed the 2013 level the most (by 5.3% on average), being more than a tenth higher in the manufacture of ICT and electrical equipment Figure 9: Production volume in manufacturing industries by technology intensity 110 105 100 c§ 95 S^90 li 85 80 "jš 75 lÜ 70 65 60 - Low-technology industries - Medium-low-technology industries ■ Medium-high and high-technology industries -Total manufacturing and in the manufacture of transport equipment. Owing to the beginning of the sale of a new passenger car, the production of transport equipment was more than a quarter higher year-on-year in the second half of 2014, after it was still hovering at similar levels year-on-year in the first half of the year. In most medium-low-technology industries (except for the sector of repair and installation of machinery and equipment), production volume exceeded the levels recorded a year earlier (by an average of 4.4%). It was also up year-on-year in most low-technology industries (by 1.6% on average), with the exception of the textile industry (-6.7%), where activity had declined by around 50% since 2008. According to business trends data, the prospects for manufacturing continued to improve at the beginning of this year. The share of enterprises expecting total demand to increase in the next three months is larger than at the end of last year primarily because of greater optimism regarding export demand. Sales revenues on foreign markets rose by 5.6% last year; for the first time since 2008, higher sales revenues were also recorded on the domestic market (3.6%). The indicators of expected production and employment also improved further in view of the expected stronger demand. Figure 10: Selected indicators of expectations in manufacturing -Expected production -Expected prices ----Expected employment ----Expected total demand 40 ----Expected exports —•— Conficence indicator >? 20 00 C« c; r^ CJ c? c? c? Source: SURS; calculations by IMAD. -20 Source: SURS; calculations by IMAD. Construction activity fell in the final quarter of 2014. The value of construction put in place declined by 7.5% in the last quarter (seasonally adjusted) and was 3.3% lower than in the same period of 2013. Activity in the construction of civil-engineering works, which strengthened considerably at the end of 2013 and in early 2014, has fallen since the middle of the year. The strengthening of activity was attributable to the completion of projects co-funded by the EU at the expiry of the financial perspective (municipal infrastructure projects in particular). After increasing moderately over £ 30 10 0 the summer months, the value of construction put in place in non-residential buildings dropped again in the last months of the year. Activity in the construction of residential buildings - having declined significantly over the last few years - rose in the final quarter. At the end of 2014, the stock of contracts in the construction sector was down year-on-year. After rising strongly in 2013 (up 35.5%), it was 11.4% lower in 2014. In the construction of civil-engineering works and residential buildings, the stock of contracts fell by 12.0% and 20.2%, respectively, while it was up in non-residential buildings (6.2%) due to an increase towards the end of the year. Figure 11: Value of construction put in place -Construction ----Residential buildings -Non-residential buildings ----Civil-engineering works 70 60 Figure 12: Turnover in trade sectors - Retail trade, real 30 20 a a cy cy Source: BS; calculations by IMAD. Turnover in the sale of motor vehicles rose further in the last quarter of the year, while turnover in wholesale trade dwindled considerably and reached the lowest level in 2014. In the sale and repair of motor vehicles, the only trade sector that surpasses the pre-crisis level, turnover continued to grow owing to the increased sale of new passenger cars.9 In the year as a whole, real turnover was up 6.9%. Nominal turnover in wholesale trade was also higher year-on-year (3.7%), but since September it has been falling. After third-quarter growth, turnover in retail trade fell in the fourth quarter (seasonally adjusted); in 2014 overall, it was similar to that in 2013. Only turnover in the sale of food, beverages and tobacco products increased in the last quarter, but in the year as a whole it was lower than in 2013. After rising in the preceding four quarters, turnover in the sale of non-food products declined; in 2014 as a whole, it was otherwise somewhat higher year-on-year. ----Sale, repair of motor vehicles, real -Wholesale trade, nom. O O O O Source: SURS; calculations by IMAD. Figure 13: Turnover in retail trade -Sale of automotive fuels -Sale of food, beverages and tobacco products ----Sale of non-food products a a a a Source: SURS; calculations by IMAD. The strongest year-on-year growth was generated in stores selling household appliances and audio and video recordings (14.1%), where turnover fell in the last three months after increasing in previous quarters. Turnover in the sale of furniture and construction material, retail trade by mail order or internet, and in the sale of textiles, clothing and footwear was also higher than in 2013. Turnover was also up in the sale of automotive fuels (1.4%), which was most likely due to increased trade in other goods and services that are also sold by companies registered in this activity,10 as the quantity of automotive fuels sold was similar to that in 2013. 9 The number of first registrations of new passenger cars increased by 6.4% in the fourth quarter (seasonally adjusted). In 2014, it was up 5.0% year-on-year; within that, registrations by legal entities rose by 10.7%, while registrations by natural persons declined by 10.5%. Some indicators lead to the conclusion that some of these cars were exported. After increasing for a long period, nominal turnover in market services (excluding distributive trades)11 declined 10 Such as electricity, natural gas, merchandise and some services. 11 Activities from H to N (SCA 2008) subject to the Council Regulation (EC) No. 1165/98 concerning short-term statistics. 50 40 10 0 Figure 14: Nominal turnover in market services (other than trade) -Total -Transportation and storage (H) ----Communications (J) ----Professional and technical (M) -Administrative and support service activities (N) 115 o 110 o c§ 105 rN lU -!3 100 ■D (U 95 90 85 80 75 a a a Source: SURS; calculations by IMAD. significantly in the last quarter of 2014, but remained up year-on-year in the majority of main services. Turnover in transport services fell particularly in the sector of warehousing and support activities for transportation,12 where it had been rising strongly in previous quarters. It made the largest contribution to the remarkable year-on-year increase in turnover in transport services in 2014. The vigorous growth of turnover in administrative and support service activities in 2014 was mainly underpinned by employment activities. Strong year-on-year growth Figure 15: Business trends - Economic sentiment ■ Retail trade - Construction - Manufacturing - Service activ. ----Consumers Source: SURS; calculations by IMAD. 12 These movements are also related to the new toll pricelist for freight vehicles, which was introduced by DARS in October 2013. It increased toll prices, but gives significant discounts to environmentally friendly vehicles, which gradually altered the structure of vehicles; with 3.3% more freight vehicles passing through toll stations in Q4 2014 (year-on-year), the collected toll amount declined by 10.3%. was also recorded by the accommodation and food service activities, where turnover keeps rising. Turnover in information and communication activities was also up slightly year-on-year, but only owing to first-quarter growth. At the end of the year, the largest decline was in professional and technical services, notably architectural and engineering services, where turnover was lower year-on-year in 2014. Economic sentiment improved further in February. Confidence increased particularly in service activities, being also slightly higher again in manufacturing and construction. Confidence in retail trade remained high. Consumer confidence - having risen until the beginning of the last quarter of 2014 - has maintained similar levels in recent months. Labour market The number of employed13 increased further in the final quarter of 2014 (seasonally adjusted); in 2014 as a whole, it was up in most activities. In the majority of private sector activities it was higher than in 2013. For the first time since 2008, the number of employed rose in manufacturing. It was also up in professional, scientific and technical activities, and in the transportation and storage sector. The largest increase was recorded in employment activities, which lease employees to other sectors,14 in our estimation particularly to manufacturing and construction, where the indicators of activity improved relative to 2013. A larger number of employed persons than in 2013 was also recorded in public services. It declined again only in activities of public Figure 16: Employed persons by activity Q4 2013 »01 2014 »02 2014 »03 2014 104 2014 1.0 0.8 0.6 0.4 0.2 0.0 ss -0.2 (u -0.4 Manufacturing Construction Market services Public services Source: SURS; calculations by IMAD. 13 According to the Statistical Register of Employment; these are persons in paid employment and self-employed persons except farmers. 14 In December 2014, the number of employed persons in employment activities was up 6,021 year-on-year, while the number of all employed persons was 8,635 higher. -1.0 Table 4: Employed persons by activity Number in '000 Change in Number 2013 XII 13 XI 14 XII 14 XII 14/XII 13 I-XII 14/I-XII 13 Manufacturing 177.7 177.0 179.6 178.6 1,595 650 Construction 54.3 52.0 55.8 51.9 -162 -268 Market services 333.1 333.5 344.3 343.1 9,600 5,901 -of which: Employment activities 6.6 6.6 13.2 12.6 6,021 3,971 Public services 170.1 170.2 171.8 171.4 1,244 885 Public administration and defence, compulsory social security 49.1 48.9 48.5 48.3 -558 -325 Education 65.4 65.6 66.5 66.5 801 597 Human health and social work activities 55.6 55.7 56.7 56.7 1,001 613 Other1 58.4 58.6 55.2 55.0 -3,642 -2,973 Total 793.6 791.3 806.8 800.0 8,635 4,196 Source: SURS; calculations by IMAD. Note: 'Agriculture and hunting, forestry, fishing; mining; electricity, gas and steam supply; water supply, sewerage, waste-management and remediation activities administration, defence and compulsory social security. It was also up in arts, entertainment and recreation and other activities, particularly as a result of a higher number of self-employed. The number of persons in employment also rose in 2014 according to data from the Labour Force Survey (1.2%). The number of registered unemployed decreased further in the first two months of this year (seasonally adjusted). At the end of February, it stood at 122,552, which is 5.6% less than in the previous February. In the first two months of 2015, fewer persons registered as unemployed than in the same period last year, mainly as fewer lost work for business reasons or due to the bankruptcy of their company. The outflow from unemployment was somewhat larger: the outflow into employment remained the same as in the first two months of 2013 but there were fewer transitions into inactivity. The registered unemployment rate remained unchanged in the last few months (12.8%, seasonally adjusted). According to Figure 17: Employed persons according to the statistical register of employment and the registered unemployed 800 790 770 750 740 - Employed according to SRE (left axis) -Registered unemployed (right axis) Table 5: Indicators of labour market trends in % 2013 XII 14/ XI 14 XII 14/ XII 13 I-XII 14/ I-XII 13 Persons in formal employment2 -2.0 0.0^ 1.1 0.5 Registered unemployed 8.8 -0.2^ -3.7 0.2 Average nominal gross wage -0.2 0.1' 1.4 1.1 - private sector 0.6 0.4^ 1.8 1.4 - public sector -1.3 -0.1' 1.1 0.9 -of which general government -2.5 -0.4^ 0.9 0.6 2013 XII 13 XI 14 XII 14 Rate of registered unemployment (in %), seasonally adjusted 13.1 13.4 12.8 12.8 Average nominal gross wage (in EUR) 1,523.18 1,544.85 1,633.22 1,566.09 Private sector (in EUR) 1,404.40 1,425.54 1,541.33 1,451.55 Public sector (in EUR) 1,740.78 1,764.57 1,808.62 1,783.46 -of which general government (in EUR) 1,716.48 1,724.50 1,752.52 1,739.65 Sources: ESS. SURS; calculations by IMAD. Note: 1seasonally adjusted, 2 Persons in paid employment, self-employed persons and farmers. the Labour Force Survey, the number of unemployed dropped in 2014 for the first time since 2008 (-3.5%). The survey unemployment rate was also down (-0.4 percentage points), totalling 9.7%. The movement of earnings at the end of 2014 was, as usual, marked by extraordinary payments, which were higher year-on-year for the first time since the beginning of the crisis. Average gross earnings per employee rose further in the last quarter of the year (0.3%, seasonally adjusted) due to growth in the private and the public sector. In the government sector they rose less than in previous quarters (the largest increase was in the second quarter due to the beginning of the payment of the suspended promotions). They strengthened further in public corporations15 and, slightly, in the private sector. In both, Source: SURS, ESS; calculations by IMAD. 15 Public corporations are corporations controlled by units of the general government sector, the basic criterion for determining control being majority ownership (owning more than half of the voting shares). They include companies, banks, insurance corporations, old people's homes, pharmacies, etc. more 13'h month payments and Christmas bonuses were paid than a year earlier. A total of EUR 90.7 m was paid with earnings for the last two months, compared with EUR 79.9 m a year earlier, and EUR 156.4 m in 2007, when year-end payments were highest. Extraordinary payments were 12.9% higher year-on-year in private corporations (where the bulk of these payments are paid), and 31.7% higher in public corporations. In December, extraordinary payments amounted to EUR 21 m, which is around a fifth more than in December 2013. Figure 18: Average gross earnings per employee -Gross earnings per empoloyee ------Private sector -Public sector Figure 19: Growth in gross earnings per employee 1,900 1,800 1,700 1,600 SD 1,500 S^ 1,400 e) 1,300 ---- - of which, general government sector - - of which, public corporations a a a a Source: SURS; calculations by IMAD. After two years of nominal stagnation, gross earnings per employee rose by 1.1% in 2014. Growth in the private sector picked up slightly (from 0.6% to 1.4%)16 and was mainly due to growth in basic earnings; for the first time in three years, earnings also increased due to higher extraordinary and overtime payments, while payments in arrears were lower for the first time since the beginning of the crisis. Gross earnings in the public sector were up 0.9% year-on-year in 2014, being significantly impacted by higher average earnings in the general government (0.6%). After a 4.7% reduction in 2012 and 2013,17 general government earnings increased last year mainly due to the beginning of the disbursement of the suspended promotions of public servants and the petering out of the effect of the austerity measures from the middle of 2013. The growth of earnings in public corporations increased slightly last year (1.9%; 1.7% in 2013). 16 It rose somewhat in private non-financial corporations (1.4%; 2013: 0.8%); in financial corporations, it increased at an above-average rate after two years of decline (2.6%; 2013: -1.2%). It was higher in the majority of activities (remaining down only in accommodation and food service activities [I], real estate [L], arts, entertainment and recreation activities [R], and other activities [S]. As in 2013, outstanding growth was recorded in industry (3.2%; 2013: 2.6%), including manufacturing, where it strengthened further. Higher earnings were also recorded by most market services. 17 After the nominal stagnation in 2011 and 2012, public servants' earnings were cut by 8% with the enforcement of the ZUJF in June 2012, but at the same time public servants were paid the remaining two quarters of funds intended to eliminate disparities in earnings; gross earnings of the general government sector were therefore down 2.2%, on average, in 2012. Due Private sector Public sector - of which, gen. - of which, government public sector corporations Source: SURS; calculations by IMAD. Prices In February, the year-on-year price decline (-0.4%) remained at almost the same level as in January.18 The main factor of deflation in February remained lower prices of unprocessed food and energy. Amid lower euro prices of oil in year-on-year terms (-36%), prices of liquid fuels Figure 20: Headline and core inflation in Slovenia and in the euro area -Slovenia HICP ----Slovenia HICP - core inflation -Euro area HICP ----Euro area HICP - core inflation Source: Eurostat. to the continuation of fiscal consolidation, basic earnings of public servants were reduced again in June 2013 (partly in a linear and partly in a progressive manner, by around 1.3%, on average). Other measures included abolition of increased seniority bonus paid to women for years of service over 25 years, a reduction of the allowance for specialisation and master's and doctoral studies (by half) and a cut in sickness benefits. In 2013 as a whole, gross earnings of the general government therefore declined by a further 2.5%. 18 Given month/the same month one year previously. were down (-0.9 percentage points). Prices of durables remained lower (-0.3 percentage points). Among price groups that recorded growth, prices of services stood out (0.6 percentage points). Core inflation remained low amid sluggish domestic demand. Similar price movements also marked other countries in the euro area, which recorded deflation again in February (-0.3%),19 according to Eurostat's flash estimate. Price declines were mainly impacted by lower prices of energy (-0.8 percentage points), while services prices increased (0.4 percentage points). Industrial producer prices on the domestic market remain lower year-on-year at the beginning of 2015 (-0.6%); price growth on foreign markets is still modest (0.3%). The main factors in domestic price movements remain lower prices in the manufacture of food products (-0.7%) and ICT and electrical equipment (-0.3%), while prices Figure 21: Industrial producer prices - PPI (domestic market) ---Mfr.of basic metals,fabricated metal prod.,ex. mach.,equip.(domestic) ----Mfr. of food products; beverages; tobacco products (domestic) - PPI (foreign market) 18 15 12 9 6 3 0 -3 m m Ji Source: SURS. Table 6: Consumer price growth, in % 2014 II 15/I 15 II 15/II 14 Total 0.2 0.2 -0.4 Food -1.0 0.1 -0.3 Fuels and energy -4.1 -0.1 -6.9 Services 2.8 0.6 2.2 Other1 0.2 0.0 -0.3 Total excluding food and energy 1.3 0.3 0.9 Core inflation - trimmean2 0.0 0.0 -0.1 Administered prices -2.6 -0.2 -8.1 Tax impact - contribution in percentage points. 0.4 -0.1 Source: SURS, Ministry of Economic Development and Technology; calculations by IMAD.Notes: 1 Clothing, footwear, furniture, passenger cars, alcoholic beverages, tobacco, etc.; 2The trimmean approach excludes the share of extreme price changes in each month. The optimum share is determined as a difference between the moving average and the calculated trimmed mean in the period of the last five years. in the manufacture of metals and metal products are higher (2.5%). Together with higher prices of transport equipment (3.3%), the latter contributed to growth on foreign markets. In December, price competitiveness continued to improve. The real effective exchange rate deflated by the relative HICP dropped year-on-year in December (-1.2%) for the sixth month in a row. Given the increase in the first half of the year, it was nevertheless only slightly lower than in 2013 in 2014 as a whole (-0.1%). Since July, price competitiveness has been improving as a result of declining relative prices,20 while since September it has also been rising due to the nominal falling of the effective exchange rate of the euro. The main reason for the latter was the depreciation of the euro against some main currencies.21 In 2014, Slovenia was around the middle of euro area countries in terms of price competitiveness movements. Figure 22: Real effective exchange rate deflated by the HICP -REER HICP -NEER ----HICP # 1 Source: ECB; calculations by IMAD. Balance of payments The current account surplus widened considerably in 2014. The current account, which was balanced in the first three years of the economic crisis, has been in surplus since 2011. Last year's surplus was the largest thus far (EUR 2,186.8 m or 5.9% of GDP). Its widening was underpinned by a larger surplus in merchandise trade amid faster growth in exports than imports and the improved terms of trade. The surplus in services trade was smaller; the deficit in the balance of primary income was up; the deficit in secondary income also widened slightly. 9 According to the HICP data. 20 In Slovenia relative to the trading partners. 21 The British Pound Sterling, US dollar, Chinese Juan and South Korean Won. 3 2 0 -6 Figure 23: Components of the current account of the balance of payments Merchandise trade Services trade Primary income Secondary income -Current account a a a a Source: BoS; calculations by IMAD. The surplus in external trade widened as a result of a larger surplus in merchandise trade. The increase in the surplus of merchandise trade was mainly due to the growing exports to EU markets related to the improvement in export competitiveness. The widening of the merchandise trade surplus was - alongside quantity factors - also due to the terms of trade (0.8%), which improved for the second consecutive year primarily owing to lower euro prices of imported manufactured goods, energy and raw materials. The surplus of trade in services was down last year chiefly due to a larger deficit in other business services.22 The surplus of trade in travel services was smaller, reflecting weak growth in revenue from non-residents' travel and higher spending of Slovenian households abroad. The larger surplus of trade in transport services was chiefly the result of a larger surplus in road and maritime transport. The surplus in construction services was also higher. Last year, revenue of Slovenian construction companies abroad declined less than expenditure on investment works, construction and installation carried out by foreign companies in Slovenia, which is attributable to a large investment in an energy facility in 2013. The deficit in the balance of primary income widened mainly as a result of the rising debt servicing costs related to the accelerated borrowing of the government sector.23 Commercial banks recorded net repayment of foreign loans and received more interest than they paid. The net interest payments of other sectors were somewhat higher. Given the low interest rates on the main refinancing operations, the Bank of Slovenia 22 The balance of trade in technical services, in services related to trade, and in the services of administrative and support service activities turned from surplus into deficit; the deficit in trade in professional and management consultancy services also widened. 23 From the deepening of the financial crisis in September 2008 to the end of November 2014, general government gross debt rose by EUR 18.4 bn to EUR 22.4 bn. The strongest debt growth was recorded in 2014 (EUR 6.7 bn). recorded positive net interest income. Total net payments of interest on external debt thus stood at EUR 709.8 m in 2014 (compared with EUR 496.5 m in 2013). The higher net outflow of other primary income was mainly the result of the net outflow of taxes on production. The net inflow of labour income was higher, as revenue of daily migrants working abroad continues to increase faster than revenue of foreign workers in Slovenia. Figure 24: Net interest income by sector ■ Government sector I Private sector Bank of Slovenia Net interest income, total a a a Source: BoS; calculations by IMAD. The deficit in the balance of secondary income was slightly smaller in 2014. The net outflows of various current transfers of the private sector rose in spite of the increased absorption of EU funds. International financial transactions24 recorded a net outflow in 2014 again, at EUR 3,351.6 m (EUR 2,882.1 m in the previous year). This largest net outflow of capital to date was due to further deleveraging and the outflow of currency. Last year's net inflow of direct investment was the second largest since 1994 (EUR 1,118.3 m). Direct investment in Slovenia rose significantly in 2014, mostly as a result of the sale of companies to foreign investors,25 while domestic investment abroad stagnated for the second consecutive year. Equity capital declined, while intercompany financing of direct investors increased. Portfolio investment posted a net inflow again in 2014, mostly due to the issue of bonds. The external debt of the general government therefore recorded the largest increase since the beginning of the crisis. The government issued 5- and 10-year dollar bonds in a total amount of USD 3.5 bn (EUR 2.7 bn) in February; a 3.5-year bond in 24 Financial account excluding reserve assets. 25 The bulk of equity capital is accounted for by the sale of companies to foreign investors from Austria, Croatia, Germany and the US. Figure 25: Financial transactions of the balance of payments 4,000 3,000 2,000 E 1,000 cc u J^ 0 -1,000 -2,000 -3,000 -4,000 ■ Direct investment ■ Financial derivatives -Net financial flow ■ Portfolio investment ■ Other investment a a a Source: BoS; calculations by IMAD. Table 7: Balance of payments I-XII 14, in EUR m Inflows Outflows Balance1 Balance, I-XII 13 Current account 30,776.4 28,589.6 2,186.8 2,026.6 Goods 23,100.2 21,769.9 1,330.3 763.0 Services 5,516.8 3,809.3 1,707.5 1,755.4 Primary income 1,226.7 1,825.5 -598.9 -242.7 Secondary income 932.7 1,184.9 -252.2 -249.1 Capital account 536.1 615.3 79.2 109.3 Gross acquisitions/disposals of non-produced non-financial assets 150.9 127.2 -23.8 -10.3 Capital transfers 385.2 488.1 103.0 119.5 Financial account 2,799.8 6,240.0 3,440.2 2,887.5 Direct investment 1,116.6 -1.7 -1,118.3 -59.9 Portfolio investment 4,393.9 425.4 -3,968.5 -3,976.2 Financial derivatives -37.6 -37.0 0.6 32.3 Other investment -2,673.1 5,764.6 8,437.8 6,886.0 Assets 0.0 5,764.6 5,764.6 2,241.2 Liabilities -2,673.1 0.0 2,673.1 -4,644.8 Reserve assets 0.0 88.7 88.7 5.3 Net errors and omissions 0.0 1,174.2 1,174.2 751.6 Source: BoS. Note: 1a minus sign (-) in the balance indicates a surplus of imports over exports in the current account and a rise in assets in the capital and financial account and the central bank's international reserves. the amount of EUR 1 bn in April; and a 7-year bond in the amount of EUR 1 bn with a 2.25% interest rate on the euro market in November. Other investment has recorded a net outflow since the beginning of the crisis, which is a consequence of repayments of liabilities made by commercial banks and the outflow of residents' and non-residents' currency abroad. In the last two years it has also been due to the changed TARGET position of the central bank. Other investment recorded a significant net outflow in 2014, EUR 8,437.8 m, which is 22.5% more than in 2013. On the asset side, the largest increase was in currency and deposits of the central bank. Households, the government sector and commercial banks also increased their deposits at foreign banks. On the liability side, the outflow was mainly the result of the repayment of liabilities of the Bank of Slovenia within the Eurosystem.26 Commercial banks continued to make repayments abroad; non-residents were withdrawing deposits from Slovenian banks, but to a lesser extent than in previous years. Financial markets The volume of loans to domestic non-banking sectors rose by almost EUR 200 m in January.27 According to our estimate, the growth of household loans was solely the result of the appreciation of the CHF against the EUR, while the increase in corporate, NFI and government loans mainly reflected higher lending activity of the Slovenian banking system. Government and household deposits continue to expand this year. Banks are still making debt repayments to the ECB. At the end of 2014, the quality of bank assets improved, the main reason being the transfer of claims to the BAMC. Bank deleveraging abroad slowed in 2014. In January, the volume of household loans rose strongly due to the appreciation of the CHF against the EUR. The increase of around EUR 80 m was the result of a larger volume (by around EUR 105 m) of housing loans, 15% of which are foreign-currency loans. Had the CHF not appreciated, housing loans would have declined slightly, according to our estimate. Consumer loans and loans for other purposes continue to fall. Together, they were around EUR 25 m lower in January. In January, corporate and NFI loans rose by around EUR 85 m. The volume of foreign-currency loans being small, only a small part of the increase was due to exchange rate fluctuations, while the bulk of growth reflected increased lending, which is typical for this month of the year. In the period of the crisis, corporate and NFI loans declined in January only in 2013. Corporate and NFI deleveraging abroad rose significantly in 2014 primarily as a result of higher repayments in the last four months of the year. Corporate and NFI net repayments of foreign loans totalled around EUR 560 m in 2014 (EUR 135 m in 2013).28 Total net deleveraging was the result of repayments of long-term loans, while enterprises borrowed around EUR 60 m net in short-term loans. The gaps between domestic 26 The Target position of the central bank shifted from liabilities to assets. 27 In loan movements in January 2015, the change in volume as at 31 January 2015 relative to 31 December 2014 is shown. 28 We eliminated the impact of two one-off events, i.e. the requalification of liabilities from foreign direct investment into loans from non-affiliated companies, and increased borrowing of an energy company, which contributed EUR 1.1 bn to total net flows, according to our estimate. Table 8: Financial market indicators Domestic bank loans to non-banking sector and household savings Nominal amounts, EUR bn Nominal loan growth, % 31. XII 14 31.I 15 31. I 15/31. XII 14 31. I 15/31. I 14 31. I 14/31. I 13 Loans total 22,860.9 23,055.4 0.9 -11.8 -16.5 Enterprises and NFI 12,278.2 12,362.6 0.7 -20.8 -23.4 Government 1,820.3 1,850.4 1.7 11.0 -4.4 Households 8,762.4 8,842.4 0.9 -0.4 -3.4 Consumer credits 2,104.1 2,096.8 -0.3 -4.9 -10.3 Lending for house purchase 5,348.0 5,452.6 2.0 2.9 1.3 Other lending 1,310.4 1,292.9 -1.3 -6.1 -8.5 Bank deposits total 15,355.6 15,474.4 0.8 5.0 -2.8 Overnight deposits 7,373.6 7,528.0 2.1 16.3 0.3 Short-term deposits 3,272.5 3,247.0 -0.8 -12.1 -9.4 Long-term deposits 4,704.9 4,693.8 -0.2 2.8 -1.2 Deposits redeemable at notice 4.6 5.7 23.9 49.8 -41.2 Mutual funds 2,150.7 2,270.3 5.6 24.5 -1.2 Government bank deposits, total 1,909.4 2,167.7 13.5 47.1 -41.1 Overnight deposits 24.6 493.0 1,904.7 163.9 -27.2 Short-term deposits 860.6 688.4 -20.0 31.1 -23.0 Long-term deposits 955.2 954.1 -0.1 28.0 -52.2 Deposits redeemable at notice 69.0 32.1 -53.5 94.6 2,616.9 Sources: Monthly Bulletin of the BoS, SMA (Securities Market Agency); calculations by IMAD. Figure 26: Changes in the volume of loans to households, enterprises and NFIs, and the government ■ Households »Enterprises and NFIs Government ♦Total 250 200 150 100 E 50 cc 0 -50 -100 -150 -200 Jan.2011 Jan. 2012 Jan. 2013 Jan. 2014 Jan.2015 Source: BoS; calculationy by IMAD. and foreign29 interest rates30 continue to fluctuate significantly. They narrowed somewhat in the last few months (to 140 basis points in December), but remained among the widest in the euro area. Bank deleveraging abroad almost halved in 2014; banks recorded modest positive net inflows in some segments. Net repayments of liabilities totalled just below EUR 950 m. 29 EU average. 30 Interest rates on loans of over EUR 1 m with a variable, or up to one year with a fixed initial interest rate. Figure 27: Net repayments of foreign liabilities of domestic banks ■ Long-term loans BShort-term loans «Deposits Notes »Total 500 -1,000 E cc -1,500 jz -2,000 -2,500 -3,000 -3,500 2011 2012 2013 2014 Source: BoS. More than 90% of repayments were net repayments of long-term loans. Banks also made net repayments of foreign deposits (in the amount of EUR 155 m). Short-term loans and bonds recorded net inflows in the total amount of EUR 80 m. Household and government deposits continue to increase this year, but their maturity structure is deteriorating. The volume of household deposits grew by around EUR 120 m in January. The increase was almost entirely due to a larger volume of overnight deposits; a minimal increase 0 -500 was also recorded by deposits redeemable at notice. As a result of the appreciation of the CHF against the EUR, there was also an increase in foreign currency deposits (by EUR 37 m). Government deposits rose by almost EUR 260 m. The amount of non-performing claims declined by EUR 1.1 bn in 2014. It rose by around EUR 700 m in the first nine months and fell by approximately EUR 1.8 bn in the last quarter of the year. The volume of non-performing claims excluding the claims transferred to the BAMC (EUR 1.6 bn) thus also declined in the last quarter of 2014. At the end of the year, non-performing claims accounted for 11.9% of the banking system's total claims, which is 1.5 percentage points less than in 2013. Amid improving conditions in the banking system, banks created around EUR 600 m in additional impairments and provisions in 2014, the least since 2009. Figure 28: Creation of impairments and provisions, and the share of arrears of more than 90 days in the Slovenian banking system Provisions and impairments -Share of arrears of more than 90 days (right axis) 22 20 18 16 14 12 , 200 10 ■ 150 8 100 6 50 4 -5^ I-'---f^--i;-=- 0 C C c Source: BoS; calculations by IMAD. Public finance The general government deficit31 amounted to EUR 1.259 bn or 3.4% of GDP in 2014, which is EUR 299.0 m or 0.9 percentage points less than in 2013. The deficit narrowed despite the increase in general government expenditure as a result of the high payments of interest on general government debt and public investment, and rising expenditure on pensions. The values of all major categories of tax revenues and other revenues rose in 2014 under the impact of fiscal measures, one-off inflows and GDP growth. Figure 29: Consolidated general government revenue and expenditure 17.0 16.5 is 16.0 ^^ 15.5 E 14.5 14.0 -Total general government revenue, total -Total general government expenditure, total ■4.......f........f. -4........4. 4.........1.........4 Source: MF; calculations by IMAD. The main factor in the 5.2% growth of general government revenue in 2014 was higher tax revenues. General government revenue was EUR 764 m higher than in 2013. More than half of the increase arises from higher revenues from taxes32 - corporate income tax (CIT) and value added tax (VAT) in particular, and personal income tax - the rest being due to higher social security contributions (by EUR 145 m), non-tax revenues (by EUR 196 m) and receipts from the EU budget (by EUR 102 m). Figure 30: Contributions of individual revenue categories to year-on-year revenue growth "Tax revenues ■ Social security contributions ■ Non-tax revenues ■ Receipts from the EU budget ■ Capital and transferred revenues and donations received ♦ Total revenues 6 2011 2012 2013 Source: MF; calculations by IMAD. 2014 31 According to the consolidated general government budgetary accounts on a cash basis. 32 I.e. tax revenues excluding social contributions, unlike in the consolidated general government budgetary accounts. ^ 15.0 Box2: Revision of the state budget for 2015 The National Assembly approved the revised state budget for 2015 on February 20th. In comparison with the budget for 2015 adopted in November 2013, the revised budget is based on more favourable forecasts of economic trends and takes into account the shortfall of tax revenues due to the non-implementation of the real estate tax. On expenditure side, it makes adjustments in some categories of expenditure (interest) that were set too low in the original budget, and significantly increases capital expenditure and transfers relating to the completion of projects within the framework of the 2007-2013 financial perspective. According to the revised budget, the deficit of the state budget will amount to EUR 1.385 bn this year. It will thus be higher than in 2014, which is entirely due to the anticipated higher payments than receipts of EU funds. With the revision of the state budget, Slovenia still plans to bring the general government deficit1 below the target of 3% of GDP in 2015. In view of favourable economic developments and increases in some taxes, general government revenue is expected to be higher than last year in 2015; the shortfall due to the non-implementation of the real estate tax will also be compensated by non-tax revenues. The expected revenue growth is underpinned by the anticipated further strengthening of economic activity in 2015 and measures for increasing tax revenues, such as increases in the tax rates for banking services and insurance transactions, a rise in the CO2 tax, extension of the validity of the fourth personal income tax bracket, a lowering of the income tax relief for cross-border workers and a reduction in the share of revenue from personal income tax that belongs to municipalities. These measures, coupled with more favourable economic developments than expected at the end of 2013 when the budget was prepared, partly compensate for the shortfall in tax revenues due to the nonimplementation of the real estate tax; the lack should also be partly offset by profits of state-owned companies and other non-tax revenues. This perpetuates the trend seen in the past few years towards replacing tax revenues with non-tax revenues and funds from the EU budget, which are not systemic sources of funding and can be less stable. Despite the adoption of measures to stem certain expenditure categories, total revenue will rise relative to 2014 in 2015, mainly as a result of the foreseen higher expenditure on investment, transfers to local government budgets and expenditure on goods and services. The anticipated strong increase in public investment is linked to the faster absorption of EU funds under the expiring financial perspective. Interest payments are higher than envisaged in the adopted budget from 2013, but should decline relative to 2014 according to MF estimates. Transfers to the pension fund, subsidies and current payments to other institutions performing public services - which are otherwise higher than foreseen in the adopted budget - are lower than in 2014. Transfers to local government budgets are higher, as a compensation for part of the reduction in the lump sum within the intervention measures to balance public finances of municipalities. Budgetary reserves (which in 2015 include resources of the water protection fund and the climate change fund) and expenditure on goods and services are also higher than in 2014. Transfers to individuals and households will be lower for the fourth consecutive year. As a result of a smaller effect of measures than planned at the end of 2013 (a 3% reduction in the wage bill), and the payment of the final quarter of funds intended to eliminate wage disparities, the wage bill will remain roughly the same as in 2014. Table 9: State budget revenue and expenditure, EUR m Previous realisation 2014 Adopted budget 2015 Revised budget 2015 Difference (1) (2) (3) (3-1) (3-2) TOTAL REVENUE 8.459 8.626 8.562 103 -64 Tax revenues 6.579 6.938 6.870 292 -68 Non-tax revenues 805 467 579 -227 112 Capital and transferred revenues, donations 1.036 1.160 1.073 36 -88 Receipts from the EU budget 39 61 41 1 -20 TOTAL EXPENDITURE 9.655 9.485 9.947 292 462 Current expenditure 2.873 2.787 2.950 77 163 Current transfers 5.215 4.993 5.087 -128 94 Capital expenditure and transfers 1.164 1.292 1.521 356 229 Payments to the EU budget 403 413 390 -13 -24 SURPLUS/DEFICIT -1.195 -859 -1.385 -190 -526 Source: MF - the adopted budget and Bulletin of Public Finance. 1 The deficit of the general government deficit according to the ESA-2010 methodology (on an accrual basis) comprises all units of the general government sector; the accounting of EU funds on an accrual basis also differs from that on a cash-flow basis. Table 10: Consolidated general government revenue and expenditure 2013 2014 2014/2013 EUR m % of GDP Structure, % EUR m % of GDP Structure, % Growth, % REVENUES (consolidated) - total 14,728.2 40.7 100.0 15,492.0 41.6 100.0 5.2 TAX REVENUES 12,648.4 35.0 85.9 13,191.6 35.4 85.2 4.3 Personal income tax 1,868.0 5.2 12.7 1,915.5 5.1 12.4 2.5 Corporate income tax 265.2 0.7 1.8 468.4 1.3 3.0 76.6 Taxes on property 254.1 0.7 1.7 244.2 0.7 1.6 -3.9 Value added tax 3,029.1 8.4 20.6 3,153.3 8.5 20.4 4.1 Excise duties 1,490.7 4.1 10.1 1,491.3 4.0 9.6 0.0 Customs duties 77.5 0.2 0.5 77.7 0.2 0.5 0.3 Social security contributions 5,127.2 14.2 34.8 5,272.5 14.2 34.0 2.8 NON-TAX REVENUES 989.0 2.7 6.7 1,185.4 3.2 7.7 19.9 CAPTIAL REVENUES, DONATIONS RECEIVED AND TRANSFERRED REVENUES 152.4 0.4 1.0 74.8 0.2 0.5 -50.9 RECEIPTS FROM THE EU BUDGET 938.4 2.6 6.4 1,040.3 2.8 6.7 10.9 EXPENDITURES (consolidated) - total 16,286.4 45.1 100.0 16,751.2 45.0 100.0 2.9 CURRENT EXPENDITURE 6,838.4 18.9 42.0 7,042.1 18.9 42.0 3.0 Salaries, wages and other personnel expenditures 3,616.7 10.0 22.2 3,610.4 9.7 21.6 -0.2 Expenditure on goods and services 2,238.9 6.2 13.7 2,232.3 6.0 13.3 -0.3 Domestic and external interest payments 840.1 2.3 5.2 1,097.4 2.9 6.6 30.6 Reserves 142.6 0.4 0.9 102.1 0.3 0.6 -28.4 CURRENT TRANSFERS 7,671.3 21.2 47.1 7,591.9 20.4 45.3 -1.0 Subsidies 519.5 1.4 3.2 467.4 1.3 2.8 -10.0 Transfers to individuals and households 6,343.1 17.5 38.9 6,335.0 17.0 37.8 -0.1 Transfers to non-profit organisations, other current domestic transfers 734.2 2.0 4.5 714.3 1.9 4.3 -2.7 Current transfers abroad 74.4 0.2 0.5 75.2 0.2 0.4 1.1 CAPITAL EXPENDITURE AND CAPITAL TRANSFERS 1,351.3 3.7 8.3 1,714.4 4.6 10.2 26.9 PAYMENTS TO THE EU BUDGET 425.5 1.2 2.6 402.9 1.1 2.4 -5.3 SURPLUS (DEFICIT) -1,558.2 -4.3 -1,259.2 -3.4 Source: Ministry of Finance, Bulletin of Government Finance; calculations by IMAD. Note: * The share of GDP is calculated on the basis on GDP values according to ESA-2010 (36,144,037 EUR m). The strong growth of tax revenues seen in the first six months moderated in the second half of the year. In the first half of the year, tax revenue growth mainly reflected the increase in VAT rates in the middle of 2013 and the high refunds of overpaid corporate income tax in April 2013. In the second half of 2014, the continued improvement in labour market conditions, together with lower tax allowances,^^ contributed to higher revenue from personal income tax, while better business performance translated into higher revenue from corporate income tax. Growth in revenue from property taxes in the second half of the year is related to the delay in collecting compensation for the use of building ground, because of which this revenue was still lower at the annual level than in 2013. In the second half of the year, VAT revenue was down somewhat year-on-year, but it was up 4.1% in the year as whole. With a year-on-year rise in excise duty rates, excise duties remained at the same level as in the previous year. 33 Tying the mandatory valorisation of allowances and the brackets to more than 3% growth in consumer prices, and the abolition of seniority tax allowance. The bulk of the almost 20% growth of non-tax revenues in 2014 is due to one-off inflows in the first half of the year. The strong growth of non-tax revenues in the first half of the year (51.4%) stemmed mainly from the payment of concession fees for mobile telephony radio frequencies, higher payments of treasury single account surpluses from 2013, gains on cross-currency swaps in bonds and interest income. In the second half of the year, non-tax revenues were 3.8% lower than in the same period of 2013. Other revenues (capital revenues, transferred revenues and donations received) were half lower year-on-year in 2014. Most of the 2.9% growth of general government expenditure in 2014 is explained by higher capital expenditure and interest payments. The increase in general government expenditure in 2014 (by EUR 465 m) was the result of higher capital expenditure (by EUR 363 m), interest payments (by EUR 257 m) and pension expenditure (by EUR 34 m). Among current transfers, there were also increases in social security transfers and scholarships. Current transfers excluding pension Box 3: Drawing of Cohesion Policy funds In the 2007-2013 financial framework,' EUR 4.1 bn was available to Slovenia for the implementation of the Cohesion Policy (OP SRDP,2 OP HRD,3 OP ETID4). Together with additional appropriations,5 EUR 4.4 bn was allocated by the end of 2014. Grants paid from the state budget amounted to EUR 3.4 bn, while reimbursements to the state budget totalled EUR 3.1 bn. The highest percentage of allocated funds with regard to the available funding was recorded by the OP ETID, which otherwise has the lowest absorption rate. In terms of reimbursements to the state budget, the OP SRDP and OP HRD are more successful than the OP ETID. The bulk of additional funds were committed for the OP ETID (16%). The most were for environment protection projects, especially in the field of municipal waste water collection and treatment and drinking water supply. The inflows of funds for OP ETID projects increased significantly in the last four months of 2014. The highest absorption rate was recorded by projects in the fields of sustainable energy use (80.9% of the allocated funds) and road and maritime infrastructure (77.0% of the allocated funds), and the lowest by projects in the area of municipal waste management (29.7%). Funds for this development priority were not allocated in full, as fewer regional centres for waste management were needed than foreseen at the beginning of the programming period. Figure 31: Absorption of Cohesion Policy funds in the 2007-2013 programming period ■ Delays ■ Certified claims for reimbursement ■ Payments to beneficiaries ■ Signed contracts ■ Appropriations ■ Absorption relat. to finan. allocation for 2007-2013, 31 Dec 2014 (right axis) OP SRDP OP HRD OP ETID Source: Government Office for Development and European Cohesion Policy. Additional funds were also committed for the OP SRDP and the OP HRD (5.0%). Because of the expected lower absorption of the initially allocated funds, within the OP SRDP, additional funds will be committed for projects in the field of competitiveness and research excellence and economic development infrastructure. Projects related to regional development and the expansion of the network of emergency centres, for which contractors had already been selected at the time of approval and whose implementation is foreseen for this year, are currently underway. Approval of contingency projects whose execution is not questionable is also foreseen. Within the OP HRD, additional funds were committed for contingency projects, but these are associated with lengthy procedures for acquiring permits and delays in signing contracts and project implementation. The absorption of EU funds in 2014 was higher than in 2013. Reimbursements to the state budget amounted to EUR 1,036.2 m (EUR 933.7 m in 2013). In terms of EU funds absorption, Slovenia ranks 10'h among the 28 EU Member States. Despite the strong absorption, the delays6 at the end of 2014 were almost twice as high as at the end of 2013 (EUR 282.7 m; EUR 124.9 m in 2013). Broken down by regions, the most cohesion funds in nominal terms (EUR 1,064.4 m) were paid to Slovenia as a single region, and the least to the Zasavska statistical region (EUR 46 m), which otherwise has the highest absorption rate with regard to the planned funds (136.5%). The lowest absorption rate is recorded by the Pomurska statistical region (65.1%, EUR 350.6 m), which received the most grants for infrastructure and environmental projects (EUR 261.5 m, or 23.6% of all payments for OP ETID projects). For Slovenia to close the 2007-2013 period without losing EU funds, and taking into account that 2015 is the final year, various measure are underway to accelerate the absorption of the remaining funds, such as: reduction of delays; close monitoring of risky projects; revision of the state budget to enable the payment of all available EU funds; and changes in the operational programmes with a view of redistributing the non-allocated funds to projects where cohesion funds can be more easily absorbed. 1 The 2007-2013 programming period formally came to an end, but in accordance with the n+2/3 rule, the funds can be drawn until the end of 2015/16. 2 Operational Programme for Strengthening Regional Development Potentials. 3 Operational Programme for Human Resource Development. 4 Operational Programme for Environmental and Transport Infrastructure Development. 5 Additional funds allocated for contingency projects to prevent the risk of losing EU grants in the event of not carrying out the already approved projects. 6 I.e. the difference between payments to beneficiaries and certified claims for reimbursement. Figure 32: Contributions of individual expenditure categories to year-on-year expenditure growth I Salaries, wages, oth. personnel expendit. Incl. social security contrib. ■ Interest payments ■ Reserves ■ Current transfers Expenditure on goods and services 9! Capital expenditure and capital transfers ■ Payments to the EU budget • Total expenditure Figure 33: Receipts from the EU budget to the state budget ■ Total receipts (January 201 5) ■ Total receipts (January 2014) Common Agricultural Policy i 10 15 : In EUR m Source: MF; calculations by IMAD. 2011 2012 2013 Source: MF; calculations by IMAD. 2014 expenditure were otherwise down EUR 114 m. Most of the decline was attributable to lower subsidies to the private sector and lower transfers to the unemployed; family benefits, parental compensations, sickness benefits, and transfers to non-profit organisations and foreign governments were also lower than a year earlier. Salaries, wages and other personnel expenditures (including social contributions) and expenditure on goods and services recorded modest declines (by EUR 6 m and EUR 7 m, respectively). Payments to the EU budget were also down year-on-year (by EUR 23 m), alongside expenditure on reserves (by EUR 41 m), which was lower in the items of natural disaster reserves and funds for special purposes. The net deficit of the state budget against the EU budget was smaller year-on-year in January (EUR 2.4 m; EUR 20.3 m in January 2014). This was primarily attributable to the lower payments into the EU budget (EUR 34.3 m; EUR 47.6 m in January 2014). The payment based on gross national income was down in particular (by EUR 13.9 m). Receipts from the EU budget were higher than in the same month of 2014 (EUR 31.9 m; EUR 27.3 m in January 2014) owing to the stronger absorption from the Cohesion Fund. As in January, the bulk of funds were from Structural Funds. 0 25 X "ö C O a a (O "iS u (O (O MAIN INDICATORS 2009 2010 2011 2012 2013 2014 2015 2016 Winter forecast 2014 GDP (real growth rates, in %) -7.8 1.2 0.6 -2.6 -1.0 2.5 2.0 1.7 GDP in EUR million (current prices) 36,166 36,220 36,868 36,006 36,144 37,111 38,216 39,047 GDP per capita, in EUR (current prices) 17,714 17,678 17,960 17,506 17,550 17,986 18,500 18,885 GDP per capita (PPS)1 20,700 21,000 21,500 21,600 21,800 GDP per capita (PPS EU28=100)' 85 83 83 82 82 Rate of registered unemployment 9.1 10.7 11.8 12.0 13.1 13.1 12.6 12.2 Standardised rate of unemployment (ILO) 5.9 7.3 8.2 8.9 10.1 9.7 9.3 8.9 Labour productivity (GDP per employee) -6.1 3.4 2.3 -1.8 0.5 1.8 1.5 1.2 Inflation,2 year average 0.9 1.8 1.8 2.6 1.8 0.2 0.0 0.6 Inflation,2 end of the year 1.8 1.9 2.0 2.7 0.7 0.5 0.1 1.0 INTERNATIONAL TRADE Exports of goods and services (real growth rates, in %) -16.6 10.1 7.0 0.3 2.6 5.2 4.7 5.3 Exports of goods -17.0 11.9 8.2 0.0 2.8 6.0 5.2 5.5 Exports of services -14.8 3.4 2.5 1.5 1.8 2.0 2.6 4.2 Imports of goods and services (real growth rates, in %) -18.8 6.6 5.0 -3.9 1.4 3.9 4.1 4.5 Imports of goods -19.8 7.4 6.0 -4.6 2.2 3.4 4.2 4.5 Imports of services -12.8 2.5 -0.4 0.2 -3.1 6.7 3.7 4.3 Current account balance, in EUR million -140 68 341 1,082 1,730 1,860 2,314 2,209 As a per cent share relative to GDP -0.4 0.2 0.9 3.0 4.8 5.0 6.1 5.7 Gross external debt, in EUR million 40,416 40,838 40,292 41,503 40,205 44.399* As a per cent share relative to GDP 111.8 112.8 109.3 115.3 111.2 118,0 Ratio of USD to EUR 1.393 1.327 1.392 1.286 1.328 1.328 1.240 1.240 DOMESTIC DEMAND Private consumption (real growth rates, in %) 0.9 1.0 -0.1 -3.0 -3.9 0.7 1.1 1.6 As a % of GDP 54.7 55.9 55.8 56.2 54.1 53.1 52.1 52.0 Government consumption (real growth rates, in %) 2.4 0.1 -1.3 -1.5 -1.1 -1.0 -0.6 -0.6 As a % of GDP 20.1 20.4 20.5 20.5 20.4 19.1 18.5 18.2 Gross fixed capital formation (real growth rates, in %) -22.0 -13.7 -4.6 -8.9 1.9 5.8 3.5 0.5 As a % of GDP 24.3 21.2 20.2 19.2 19.7 20.4 20.7 20.7 Sources of data: SURS, BS, Eurostat, calculations and forecasts by IMAD (Winter Forecast, December 2014). Notes: 1Measured in purchasing power standard; 2Consumer price index; "End December 2014. PRODUCTION 2012 2013 2014 2012 2013 2014 2013 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 2 3 4 INDUSTRIAL PRODUCTION, y-o-y growth rates, % Industry B+C+D -1.1 -0.9 2.2 -2.3 -2.6 -1.7 -1.1 1.6 0.5 2.5 3.2 2.7 -0.1 -0.7 -6.5 2.8 B Mining and quarrying -7.4 1.3 -4.2 -13.3 6.7 -9.6 -7.1 16.8 -2.5 34.1 -11.0 -28.5 -11.6 9.9 23.2 -4.0 C Manufacturing -2.3 -1.5 4.2 -3.1 -3.9 -2.0 -1.4 1.2 3.0 3.2 5.1 5.6 -1.3 -0.9 -8.7 2.5 D Electricity, gas & steam supply1 10.5 3.9 -13.6 6.1 7.0 1.9 3.2 3.1 -17.8 -9.4 -10.9 -15.6 11.3 0.0 10.2 6.1 CONSTRUCTION,2 real indices of construction put in place, y-o-y growth rates, % Construction, total -16.8 -2.5 19.4 -21.6 -24.5 -10.5 -3.4 22.8 36.8 40.0 19.6 -3.3 -23.2 -14.0 -31.7 -18.7 Buildings -17.3 -20.4 3.8 -30.0 -40.9 -25.1 -16.6 5.1 6.7 6.5 8.0 -4.5 -38.2 -28.0 -50.1 -36.2 Civil engineering -16.6 6.3 26.4 -16.2 -8.5 -2.6 1.7 27.1 52.5 55.7 24.8 -1.9 -8.6 -0.6 -13.6 -6.3 MARKET SERVICES, year-on-year growth rates, % Services, total -2.8 -0.3 2.8 -4.9 -2.8 -0.1 0.5 1.1 3.5 2.1 4.6 0.9 -0.5 -2.7 -5.0 3.2 Transportation and storage 0.0 -0.1 6.1 -1.6 -2.4 -0.2 0.6 1.6 7.2 6.2 7.1 4.2 1.1 -1.8 -6.0 5.4 Information and communication activities -2.9 0.4 1.0 -4.5 -1.8 0.9 1.7 0.6 5.0 -0.3 0.6 -0.7 -0.3 -2.2 -2.9 0.0 Professional, scientific and technical activities -7.6 -2.1 -1.4 -10.3 -4.0 -1.2 -3.1 -0.6 -4.7 -2.1 7.5 -5.2 0.3 -6.4 -5.3 4.7 Administrative and support service activities -4.5 3.7 2.5 -6.8 -0.4 5.5 3.7 5.4 0.2 -1.5 3.1 8.1 0.6 0.4 -1.8 7.2 Distributive trades, y-o-y growth rates, % Total real turnover* -3.6 -1.0 3.2 -5.6 -7.1 2.1 -2.2 3.2 2.4 -1.2 5.7 5.8 -4.9 -8.6 -7.7 2.7 Real turnover in retail trade -2.2 -3.7 0.0 -5.8 -7.0 -2.6 -4.6 -0.7 -0.7 -1.0 2.3 -0.8 -4.4 -9.4 -7.2 -1.8 Real turnover in the sale and maintenance of motor vehicles -6.3 4.7 7.2 -5.3 -7.2 11.1 3.4 11.6 8.6 -1.7 12.8 9.0 -5.7 -7.4 -8.5 11.3 Nominal turnover in wholesale trade & commission trade 0.8 -0.2 3.8 -1.3 -5.1 1.1 -1.4 4.7 6.2 3.0 6.0 0.0 1.6 -5.6 -10.9 5.8 TOURISM, y-o-y growth rates, %, new methodology from 2009 onwards Total, overnight stays 1.2 0.3 -0.5 1.9 -3.4 -1.5 2.9 0.6 -2.0 -14.0 -3.4 3.9 -10.5 0.2 0.6 -11.6 Domestic tourists, overnight stays -4.9 -3.4 -3.5 -5.2 -6.1 -5.3 -2.4 0.5 -3.4 -8.1 -7.7 1.6 -10.0 -1.3 -8.2 -6.0 Foreign tourists, overnight stays 5.6 2.8 1.4 8.1 -0.6 0.9 5.6 0.7 -0.6 -17.4 -1.4 5.6 -10.8 2.5 9.3 -15.0 Nominal turnover market services (without distributive trades) -1.1 -1.4 2.2 -3.7 -6.1 -3.0 0.5 2.9 2.8 3.3 1.2 1.4 -7.4 -3.5 -7.3 -2.7 AGRICULTURE, y-o-y growth rates, % Purchase of agricultural products, SIT bn, since 2007 in EUR m 480.4 478.4 506.9 134.5 104.4 111.1 123.2 139.6 113.6 122.8 132.5 138.0 33.9 32.2 38.4 37.5 BUSSINES TENDENCY (indicator values**) Sentiment indicator -17 -13 -2 -19 -15 -14 -12 -11 -8 -2 0 2 -16 -15 -14 -14 Confidence indicator - in manufacturing -11 -5 2 -12 -9 -6 -4 -2 -1 3 3 3 -11 -8 -8 -9 - in construction -41 -22 -11 -38 -30 -24 -18 -16 -13 -10 -10 -10 -29 -30 -31 -27 - in services -12 -12 5 -16 -13 -13 -12 -10 -5 6 6 11 -13 -13 -12 -10 - in retail trade 2 2 9 -3 -5 0 8 3 2 7 10 18 1 -10 -6 -7 Consumer confidence indicator -35 -33 -22 -36 -30 -34 -33 -34 -30 -26 -17 -17 -30 -32 -28 -28 Source of data: SURS. Note: 'Only 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. 2013 2014 2015 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 -2.5 -5.1 -5.7 0.8 -1.6 -0.4 8.0 -0.4 -1.7 3.5 1.3 0.2 6.1 5.3 -1.4 4.8 3.2 1.6 3.3 - -11.0 -13.7 -1.1 -21.7 -8.0 6.0 74.1 31.1 -0.3 -30.1 73.2 18.0 9.3 -20.3 -27.4 19.6 -4.8 -24.9 -52.7 -2.7 -5.5 -6.7 0.6 -2.2 -0.4 7.7 2.0 0.5 6.1 1.2 0.2 8.3 7.0 1.1 6.4 5.4 3.7 7.9 0.7 -0.9 1.7 6.2 5.1 -1.3 5.5 -21.0 -18.8 -13.2 -9.1 -4.0 -14.7 -5.4 -15.1 -12.4 -15.6 -13.2 -17.7 - -11.6 -2.0 1.8 -5.3 -5.9 28.2 31.4 6.8 34.5 28.8 44.6 47.2 45.0 30.4 27.7 26.8 6.7 -1.8 -10.5 4.6 -24.2 -14.1 -19.1 -19.6 -11.4 10.8 3.1 0.8 6.2 4.7 8.5 9.8 11.3 -0.2 13.6 15.9 -4.0 -5.1 -12.6 7.0 -5.9 3.5 11.0 2.2 -5.5 31.8 41.5 6.3 49.1 41.1 63.0 65.1 60.4 44.6 34.1 31.5 11.6 0.4 -8.7 4.5 -3.1 -0.1 -1.4 -2.1 5.0 1.3 0.3 1.9 2.8 2.9 4.7 2.3 2.6 1.5 7.3 3.6 2.9 2.1 -0.7 1.4 - - -3.1 -2.3 0.4 -1.5 2.8 0.8 1.3 2.8 6.5 5.9 8.9 4.6 6.2 7.7 7.4 3.6 9.9 2.7 2.7 7.3 -0.3 2.8 -0.2 1.0 4.4 1.2 -1.9 2.3 5.3 6.0 3.8 1.1 0.2 -2.1 3.4 -0.4 -1.0 -0.3 -0.6 -1.2 -8.2 0.3 -10.1 -11.2 11.1 -0.7 0.5 -1.4 -7.2 -6.3 -1.2 -0.6 -1.0 -4.3 18.4 10.7 -3.2 0.7 -9.4 -6.5 3.2 6.2 1.7 2.0 7.5 6.2 3.6 6.4 0.5 0.6 -0.6 -0.7 0.2 -3.6 5.3 1.1 3.0 9.0 6.5 8.6 - - 1.2 2.5 -4.3 -3.4 1.4 2.2 2.7 4.8 2.2 1.9 3.2 2.5 -3.2 -2.9 8.4 1.1 7.9 2.9 3.2 3.2 - -2.0 -4.0 -5.2 -4.6 -3.9 -0.9 -1.4 0.1 -1.1 -0.6 -0.5 3.0 -3.2 -2.8 3.0 -0.8 4.8 -0.7 -1.3 -0.3 6.8 15.4 -2.7 -0.2 14.0 8.4 10.4 16.3 8.8 6.9 10.1 1.5 -3.4 -3.0 19.4 5.7 13.6 9.4 4.0 13.9 -0.9 -1.3 0.7 -4.6 -0.2 2.3 1.8 10.2 5.1 5.2 8.4 5.8 -0.1 3.3 6.3 2.3 9.4 1.7 0.0 -1.6 9.2 -2.4 3.4 2.2 3.2 4.0 -3.2 0.1 -0.4 -3.4 -2.1 7.8 -2.9 4.8 -5.1 -1.3 -4.7 6.0 -0.7 5.6 2.0 -10.0 0.7 -4.6 -3.5 4.3 -2.3 -0.9 -6.9 -5.7 2.4 -3.6 1.0 -1.3 -7.7 -8.7 -5.8 8.2 -0.7 -3.6 - 13.3 2.6 4.8 5.8 6.4 3.8 -4.0 1.1 4.3 -0.2 -5.8 15.5 -4.9 8.3 -3.8 2.1 -4.2 4.5 -0.7 13.9 - -3.1 -3.3 0.9 -0.6 1.3 3.9 0.7 4.1 1.4 2.0 5.1 4.2 2.7 2.9 0.7 4.6 -1.5 3.5 0.4 0.3 38.7 34.9 45.1 37.1 41.0 49.3 41.7 48.5 38.4 36.0 39.2 42.6 39.4 40.7 48.0 38.8 45.7 47.4 40.9 49.7 - - -16 -14 -13 -12 -11 -12 -11 -11 -9 -9 -7 -5 0 -1 1 -2 0 2 1 2 3 4 -5 -4 -5 -4 -3 -4 -1 -2 -3 0 1 2 3 5 6 2 2 3 2 4 4 5 -24 -21 -22 -16 -16 -17 -15 -17 -14 -16 -9 -17 -6 -8 -7 -12 -11 -9 -11 -10 -10 -8 -15 -14 -12 -10 -13 -12 -7 -10 -5 -6 -3 3 9 7 6 5 7 11 12 11 12 16 -7 15 12 4 7 16 -5 -2 9 0 -2 1 18 1 10 9 10 18 22 13 23 19 -38 -37 -36 -33 -31 -37 -34 -32 -29 -31 -29 -31 -25 -22 -17 -21 -13 -13 -20 -17 -14 -17 LABOUR MARKET 2012 2013 2014 2012 2013 2014 2013 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 2 3 FORMAL LABOUR FORCE (A=B+E) 920.2 913.4 917.9 915.2 912.9 913.8 910.5 916.5 912.9 919.8 917.5 921.3 913.0 912.9 912.7 PERSONS IN FORMAL EMPLOYMENT (B=C+D)' 810.0 793.6 797.8 801.7 789.2 795.0 794.4 795.8 784.2 799.6 803.0 804.4 788.7 788.9 790.1 In agriculture, forestry, fishing 37.0 38.2 35.4 37.4 37.4 38.9 38.1 38.4 31.7 37.1 37.5 35.1 37.5 37.3 37.4 In industry, construction 263.1 252.2 252.4 257.5 249.9 252.5 253.5 252.9 249.0 252.9 254.1 253.8 249.8 249.5 250.3 Of which: in manufacturing 182.9 177.7 178.3 180.4 177.8 177.6 177.5 177.8 177.3 178.2 178.6 179.2 177.8 177.8 177.9 in construction 59.8 54.3 54.0 56.9 52.0 54.6 55.7 54.6 51.5 54.6 55.4 54.5 52.0 51.8 52.4 In services 510.0 503.2 510.0 506.8 502.0 503.6 502.8 504.6 503.5 509.7 511.4 515.5 501.4 502.1 502.4 Of which: in public administration 50.7 49.1 48.8 50.0 49.3 49.3 49.1 48.9 48.7 49.0 49.0 48.5 49.2 49.4 49.2 in education, health-services, social work 120.9 121.0 122.2 121.0 120.7 121.1 120.5 121.6 121.6 122.4 121.6 123.1 120.4 120.8 121.0 FORMALLY EMPLOYED (C)1 717.0 698.7 703.0 708.4 696.1 700.0 699.6 699.2 693.8 703.5 706.1 708.8 695.5 695.8 696.9 In enterprises and organisations 662.6 647.6 652.6 655.1 645.8 648.5 647.9 648.1 645.2 653.1 654.7 657.2 645.3 645.8 646.4 By those self-employed 54.5 51.1 50.5 53.3 50.2 51.5 51.7 51.1 48.6 50.4 51.3 51.6 50.3 50.0 50.5 SELF-EMPLOYED AND FARMERS (D) 93.0 94.9 94.8 93.3 93.1 95.0 94.7 96.6 90.4 96.1 97.0 95.6 93.2 93.0 93.2 REGISTERED UNEMPLOYMENT (E) 110.2 119.8 120.1 113.5 123.7 118.8 116.1 120.7 128.8 120.2 114.5 116.9 124.3 124.1 122.6 Female 52.2 57.4 59.6 53.8 57.0 56.7 57.0 58.9 61.2 59.4 58.4 59.6 57.2 56.9 56.9 By age: 15 to 29 24.9 28.8 30.4 27.7 29.2 27.7 26.7 31.6 33.6 30.5 27.4 30.2 29.4 29.3 28.9 aged over 50 38.2 38.9 37.3 38.1 40.7 39.3 38.1 37.3 39.0 37.7 36.4 36.0 41.2 40.9 40.1 Osnovnošolska izobrazba ali manj 33.3 34.2 33.8 33.2 36.5 34.1 32.6 33.6 36.4 33.8 32.1 32.8 36.7 36.8 35.9 For more than 1 year 55.2 55.4 59.9 53.9 54.4 54.3 55.0 57.7 60.7 59.9 59.2 59.7 54.7 54.4 54.2 Those receiving benefits 33.9 33.0 26.6 33.0 39.3 33.7 30.3 28.7 32.7 26.2 23.9 23.7 40.3 39.2 38.4 RATE OF REGISTERED UNEMPLOYMENT, E/A, in % 12.0 13.1 13.1 12.4 13.5 13.0 12.8 13.2 14.1 13.1 12.5 12.7 13.6 13.6 13.4 Male 11.5 12.5 12.0 11.9 13.4 12.5 11.9 12.4 13.5 12.1 11.1 11.4 13.4 13.5 13.2 Female 12.6 13.8 14.3 13.0 13.8 13.7 13.8 14.1 14.8 14.2 14.1 14.2 13.8 13.8 13.7 FLOWS OF FORMAL LABOUR FORCE 5.3 6.0 -4.6 12.6 4.6 -6.0 -1.9 9.3 2.7 -9.4 -4.8 6.9 6.2 -0.2 -1.4 New unemployed first-job seekers 16.3 19.1 18.5 9.0 3.7 2.6 3.4 9.4 4.2 2.7 3.3 8.4 1.5 1.1 1.1 Redundancies 90.3 88.7 83.9 28.9 27.1 18.5 19.6 23.5 25.9 17.3 17.7 23.1 14.2 6.3 6.6 Registered unemployed who found employment 58.3 65.1 71.6 13.5 17.2 18.1 15.8 14.1 20.7 20.5 15.9 14.5 6.2 4.8 6.2 Other outflows from unemployment (net) 43.1 37.3 35.5 11.8 9.2 9.1 9.2 9.9 6.8 8.8 9.9 10.0 3.4 2.8 3.0 WORK PERMITS FOR FOREIGNERS 33.9 30.5 25.1 33.2 32.6 31.7 29.8 27.8 26.3 25.7 24.8 23.6 32.9 32.8 32.2 As % of labour force 3.7 3.3 2.7 3.6 3.6 3.5 3.3 3.0 2.9 2.8 2.7 2.6 3.6 3.6 3.5 Source of data: SURS, PDII, ESS. Note: 'In 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. 2013 2014 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 914.3 914.0 913.1 911.5 909.8 910.2 916.7 917.5 915.3 911.4 913.0 914.4 920.2 919.8 919.4 918.0 916.5 918.1 922.3 922.2 919.4 793.0 795.4 796.5 794.4 793.2 795.5 798.0 798.2 791.3 781.6 783.3 787.7 796.6 800.1 802.1 801.8 801.7 805.5 806.4 806.8 800.0 38.7 39.0 39.1 38.1 38.1 38.1 38.5 38.4 38.4 31.6 31.7 32.0 36.8 37.0 37.3 37.5 37.5 37.6 35.2 35.1 35.1 251.6 252.6 253.1 253.4 253.1 254.0 254.8 254.6 249.3 248.3 248.5 250.0 252.0 253.3 253.4 253.9 253.7 254.7 255.5 255.5 250.4 177.5 177.7 177.7 177.6 177.3 177.6 178.1 178.3 177.0 177.1 177.4 177.5 178.1 178.4 178.1 178.4 178.5 179.0 179.4 179.6 178.6 54.0 54.8 55.2 55.5 55.5 56.0 56.1 55.8 52.0 51.1 50.7 52.6 53.9 54.8 55.0 55.4 55.1 55.7 55.9 55.8 51.9 502.6 503.8 504.3 502.9 502.0 503.4 504.7 505.3 503.7 501.7 503.1 505.7 507.8 509.7 511.4 510.4 510.5 513.2 515.7 516.2 514.5 49.3 49.3 49.4 49.1 49.2 48.9 48.8 49.0 48.9 48.6 48.7 48.9 48.9 49.0 49.1 49.1 48.9 48.9 48.7 48.5 48.3 120.9 121.2 121.3 120.3 120.0 121.2 121.6 121.8 121.3 121.1 121.7 122.1 122.3 122.5 122.5 121.3 121.1 122.4 122.9 123.3 123.1 698.2 700.3 701.5 699.8 698.6 700.5 701.7 701.5 694.4 691.5 693.0 696.9 700.8 704.0 705.6 705.1 704.9 708.2 710.9 711.2 704.4 647.0 648.7 649.7 648.0 647.0 648.6 649.7 649.9 644.8 643.1 644.8 647.8 651.0 653.6 654.7 654.1 653.6 656.4 658.6 659.0 654.0 51.1 51.5 51.8 51.8 51.6 51.9 52.0 51.7 49.6 48.5 48.2 49.1 49.8 50.4 51.0 51.0 51.3 51.7 52.3 52.2 50.4 94.8 95.1 95.0 94.6 94.6 95.0 96.3 96.7 97.0 90.1 90.3 90.7 95.8 96.1 96.5 96.7 96.9 97.4 95.5 95.6 95.5 121.3 118.6 116.6 117.1 116.6 114.7 118.7 119.3 124.0 129.8 129.8 126.7 123.6 119.7 117.4 116.2 114.8 112.6 115.9 115.4 119.5 57.3 56.7 56.2 57.3 57.4 56.5 58.5 58.7 59.4 61.4 61.2 61.0 60.3 59.1 58.6 58.9 58.6 57.7 59.9 59.6 59.5 28.6 27.6 26.8 27.0 26.7 26.3 30.8 31.5 32.5 33.9 33.9 33.1 31.9 30.3 29.2 28.1 27.4 26.7 30.4 30.1 30.2 39.5 39.5 38.9 38.6 38.3 37.5 37.0 36.8 37.9 39.2 39.1 38.8 38.4 37.6 37.1 36.9 36.6 35.9 35.7 35.6 36.7 35.1 34.0 33.2 32.9 32.7 32.3 32.7 33.0 35.2 36.5 36.9 35.7 34.7 33.7 33.2 32.5 32.0 31.7 32.0 32.1 34.4 54.6 54.4 53.9 54.7 54.5 55.7 56.6 57.1 59.4 61.0 60.6 60.5 60.7 59.9 59.2 59.0 58.9 59.2 59.5 59.6 60.1 35.8 33.9 31.4 31.0 30.5 29.4 28.2 28.0 29.9 33.8 33.0 31.3 27.4 26.0 25.2 24.7 23.8 23.2 23.2 22.4 25.5 13.3 13.0 12.8 12.9 12.8 12.6 13.0 13.0 13.5 14.2 14.2 13.9 13.4 13.0 12.8 12.7 12.5 12.3 12.6 12.5 13.0 12.8 12.4 12.1 12.0 11.9 11.7 12.1 12.1 13.0 13.7 13.7 13.2 12.6 12.1 11.7 11.4 11.2 10.9 11.1 11.1 12.0 13.8 13.6 13.5 13.8 13.9 13.6 14.0 14.1 14.2 14.9 14.8 14.7 14.4 14.2 14.0 14.2 14.2 13.9 14.3 14.2 14.2 -1.3 -2.8 -2.0 0.5 -0.5 -1.9 4.1 0.6 4.7 5.8 -0.1 -3.0 -3.1 -4.0 -2.3 -1.2 -1.4 -2.2 3.3 -0.5 4.0 1.1 0.8 0.8 1.0 0.9 1.5 6.0 2.0 1.4 1.7 1.4 1.2 1.0 0.8 0.9 0.8 0.8 1.7 5.9 1.5 1.0 7.1 6.1 5.3 7.7 5.5 6.4 7.2 7.0 9.3 13.1 6.6 6.2 6.1 5.3 5.8 6.6 4.8 6.3 7.1 6.2 9.8 6.3 6.5 5.3 5.3 4.1 6.4 5.4 5.2 3.5 6.2 6.0 8.5 7.3 7.2 6.0 5.4 4.1 6.4 5.9 4.7 3.9 3.1 3.2 2.7 2.9 2.9 3.4 3.8 3.3 2.8 2.8 2.1 1.9 3.0 2.8 3.0 3.1 2.9 3.8 3.8 3.4 2.9 32.3 32.0 31.0 30.4 29.8 29.3 28.5 27.9 27.1 26.4 26.3 26.2 26.0 25.7 25.4 25.0 24.7 24.6 24.6 23.4 22.8 3.5 3.5 3.4 3.3 3.3 3.2 3.1 3.0 3.0 2.9 2.9 2.9 2.8 2.8 2.8 2.7 2.7 2.7 2.7 2.5 2.5 WAGES EUR m 2012 2013 2014 2012 2013 2014 2014 Q4 14 Dec 14 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GROSS WAGE PER EMPLOYEE, nominal y-o-y growth rates, % TOTAL 1,540 1,581 1,566 0.1 -0.2 1.1 -1.0 -1.0 -0.5 0.3 0.6 0.9 1.1 1.3 1.2 Private sector activities (A-N; R-S) 1,495 1,546 1,525 0.8 0.7 1.5 -0.1 0.0 0.5 1.0 1.2 1.7 1.4 1.4 1.3 Public service activities (OPQ) 1,675 1,687 1,689 -2.2 -2.3 0.3 -3.5 -3.6 -3.0 -1.6 -1.1 -1.1 0.3 1.1 0.8 Industry (B-E) 1,529 1,598 1,563 2.5 2.6 3.2 1.8 1.9 2.6 2.9 3.1 3.7 2.7 3.4 2.9 Trad. market services (GHI) 1,369 1,423 1,399 0.3 0.1 1.0 -0.9 -0.6 -0.1 0.1 1.1 1.2 0.7 0.9 1.3 Other market services (J-N; R-S) 1,686 1,719 1,717 -0.3 -1.3 -0.3 -1.3 -1.9 -1.5 -0.6 -1.1 -0.4 0.5 -0.5 -0.8 A Agriculture, forestry and fishing 1,311 1,381 1,379 -1.1 0.8 0.7 -2.0 -0.8 1.1 0.0 3.0 0.4 -0.3 2.3 0.5 B Mining and quarrying 2,128 2,117 2,104 3.6 -2.0 5.9 -5.2 4.1 -6.8 -2.9 -2.4 2.9 8.3 10.7 2.0 C Manufacturing 1,483 1,552 1,512 2.5 2.8 3.3 2.3 1.6 2.9 3.0 3.6 3.9 2.8 3.1 3.2 D Electricity, gas, steam and air conditioning supply 2,340 2,419 2,435 3.3 3.0 2.6 -0.5 6.2 2.8 3.6 -0.1 5.2 -1.1 6.5 -0.1 E Water supply sewerage, waste management and remediation activities 1,475 1,555 1,552 0.1 0.7 1.4 -1.4 0.3 0.1 1.0 1.3 -0.2 2.2 1.5 2.2 F Constrution 1,192 1,210 1,197 -2.5 -1.4 0.3 -3.8 -2.4 -2.1 0.1 -1.4 -0.1 0.7 -0.2 0.9 G Wholesale and retail trade, repair of motor vehicles and motorcycles 1,395 1,451 1,429 0.8 0.4 1.2 -0.3 -0.2 0.0 0.6 1.2 1.3 1.0 1.1 1.3 H Transportation and storage 1,466 1,544 1,497 -0.4 -0.2 1.1 -2.3 -1.1 0.2 -0.9 0.8 0.9 0.0 0.3 3.0 I Accommodation and food service activities 1,081 1,078 1,092 -0.8 -0.4 -0.2 -1.1 -1.3 -0.7 -0.6 0.9 0.6 0.1 0.6 -2.0 J Information and communication 2,074 2,135 2,185 -0.4 -1.4 0.1 -2.0 -0.6 -2.7 -1.1 -1.4 -2.8 1.7 0.8 0.8 K Financial and insurance activities 2,212 2,292 2,235 1.1 0.1 1.2 -0.3 -2.1 1.2 1.2 0.3 -0.2 2.7 -0.2 2.3 L Real estate activities 1,489 1,540 1,519 -0.6 -0.3 -1.2 -1.3 -1.1 0.2 -0.6 0.2 -0.8 -1.1 -0.5 -2.4 M Professional, scientific and technical activities 1,715 1,781 1,795 -1.1 -2.4 1.1 -1.3 -2.2 -3.4 -1.5 -2.6 0.1 0.5 1.5 2.2 N Administrative and support service activities 1,016 1,032 1,007 0.7 0.0 2.4 0.2 -2.4 0.7 0.7 0.9 3.3 2.7 2.6 1.2 O Public administration and defence, compulsory social security 1,744 1,755 1,757 -1.8 -1.4 1.0 -2.4 -2.4 -2.1 -0.6 -0.6 -0.9 1.2 2.1 1.5 P Education 1,622 1,632 1,632 -3.3 -3.3 0.0 -5.6 -5.4 -4.2 -2.0 -1.3 -1.2 -0.1 0.7 0.7 Q Human health and social work activities 1,676 1,689 1,696 -1.3 -2.0 -0.1 -2.1 -2.3 -2.3 -2.2 -1.4 -1.2 -0.2 0.7 0.4 R Arts, entertainment and recreation 1,614 1,637 1,675 -2.8 -3.0 -0.5 -4.6 -5.7 -3.8 -1.4 -1.0 -0.4 -0.5 0.2 -1.1 S Other service activities 1,376 1,388 1,398 -0.9 -0.4 -1.1 -2.4 -0.6 -0.7 -1.1 0.9 -1.4 -0.7 -0.3 -2.2 Source of data: SURS, calculations by IMAD. 2013 2014 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 -0.2 -0.8 -0.4 0.8 -0.4 0.4 0.7 0.3 0.7 0.7 1.6 0.4 1.0 0.5 1.7 1.7 0.7 1.6 1.1 1.0 1.4 1.0 0.4 0.1 1.8 0.1 1.1 1.3 0.8 1.5 1.4 2.7 0.9 1.5 0.8 2.0 2.0 0.5 1.8 1.3 1.0 1.7 -3.2 -3.9 -1.8 -1.7 -1.7 -1.5 -0.9 -1.0 -1.5 -1.2 -1.2 -0.9 -0.2 -0.1 1.0 0.9 1.2 1.2 0.8 1.0 0.6 4.2 1.9 1.7 3.6 2.0 3.2 2.7 3.5 3.1 3.3 5.8 2.1 2.2 1.8 4.0 4.3 1.8 4.2 2.2 2.2 4.1 -0.2 0.3 -0.5 1.0 -0.3 -0.5 1.2 0.1 2.0 0.9 0.9 1.7 0.8 -0.1 1.4 1.0 0.2 1.4 0.6 2.4 0.9 -1.7 -1.2 -1.6 0.0 -1.9 -0.1 -0.4 -1.9 -1.0 -0.3 0.4 -1.4 1.1 0.1 0.4 0.2 -0.8 -0.9 0.8 -2.2 -0.8 0.6 1.5 1.1 2.2 -3.6 1.5 0.9 1.9 6.2 -1.7 2.3 0.9 2.1 -2.3 -0.8 1.8 1.5 3.6 2.3 -2.1 1.5 -5.4 -10.3 -4.8 -1.8 -4.9 -1.8 5.1 -13.0 3.3 -8.1 19.1 -0.9 7.2 10.4 7.3 10.1 12.2 9.9 -0.2 0.9 5.5 4.4 2.3 2.0 3.4 2.0 3.7 2.4 4.4 3.9 4.0 5.3 2.4 2.5 1.8 4.3 4.6 1.1 3.7 2.7 2.5 4.4 6.6 0.7 1.3 10.0 3.1 -2.1 7.4 -0.9 -5.9 1.8 11.9 2.3 -1.2 -0.9 -1.0 -0.1 10.3 9.5 -3.0 -0.1 2.9 1.6 -0.2 -1.1 -0.5 1.7 1.7 0.9 0.8 2.2 0.2 0.5 -1.3 1.1 0.8 4.8 2.7 -2.0 3.8 2.3 1.6 2.7 -2.2 -3.2 -0.9 1.1 -1.7 0.9 -1.1 -2.5 -0.5 -1.4 0.5 0.6 1.0 0.8 0.3 0.2 -1.4 0.7 0.1 1.4 1.1 -0.5 0.6 -0.1 1.1 -0.4 1.1 0.8 1.3 1.5 0.8 0.8 2.2 1.1 0.2 1.6 0.9 0.7 1.7 1.0 1.5 1.2 0.7 0.3 -0.4 1.7 0.3 -4.7 2.5 -2.7 3.0 1.3 0.8 0.5 -0.1 -0.5 0.6 0.9 -0.8 0.9 0.4 7.1 1.5 0.1 -0.6 -1.7 -0.7 -1.0 -0.1 0.8 -0.6 2.4 -0.1 1.4 0.5 0.0 -1.3 1.7 1.6 -0.5 0.6 -1.2 -2.7 -2.0 -4.3 -1.9 -1.9 -0.8 -1.8 -0.6 -1.1 -2.3 -0.9 -0.8 -0.5 -6.9 3.6 0.2 1.5 0.9 -0.2 1.7 1.7 0.7 0.1 0.4 3.5 -0.1 4.0 -1.4 1.0 2.7 -3.0 1.5 0.3 0.3 -1.1 2.8 4.3 0.8 0.3 1.0 -1.7 7.5 -1.0 0.5 -0.2 0.6 0.2 -0.3 -1.4 0.0 0.5 0.4 -0.4 -1.1 -0.9 -0.5 -1.6 -1.6 -0.3 -0.1 -1.0 -0.4 -1.8 -2.7 -2.6 -3.0 -4.1 -3.0 -2.3 -2.4 0.3 -2.1 -2.6 -3.0 -1.6 -0.3 2.3 -0.2 -1.7 3.4 2.9 -0.3 2.1 2.4 0.7 3.7 1.4 0.0 0.9 0.8 0.2 1.3 1.0 2.1 -0.3 3.2 3.8 2.8 2.2 3.2 2.5 3.6 2.1 2.1 0.7 1.1 1.9 -2.2 -3.0 -1.0 -0.4 -0.8 -0.6 0.8 -1.0 -1.5 -1.5 -0.8 -0.3 0.8 0.9 1.9 1.6 1.9 2.8 0.8 1.8 1.9 -4.2 -5.8 -2.5 -2.4 -2.2 -1.3 -1.5 -1.4 -1.1 -0.8 -1.5 -1.2 -0.5 -0.4 0.6 0.7 0.8 0.6 0.6 0.8 0.5 -3.0 -2.1 -1.7 -2.2 -1.8 -2.4 -1.8 -0.4 -1.8 -1.3 -1.4 -1.1 -0.8 -0.6 0.7 0.3 1.2 0.4 1.1 0.5 -0.4 -4.0 -3.2 -4.2 -0.7 -2.6 -0.9 -1.4 -0.5 -1.1 -0.4 0.8 -1.6 -0.7 -1.7 0.8 -1.0 1.5 0.0 -1.4 -2.6 0.7 1.0 -1.2 -1.9 -0.8 -1.2 -1.2 0.9 -0.5 2.3 -1.6 -1.0 -1.7 -2.1 -0.7 0.8 0.3 -0.8 -0.3 -1.8 -1.7 -3.0 PRICES AND INDICATORS OF OVERALL COMPETITIVENESS 2012 2013 2014 2012 2013 2014 2013 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 2 3 4 CPI, y-o-y growth rates, % 2.6 1.8 0.2 2.6 2.3 1.5 2.1 1.1 0.5 0.6 -0.2 -0.1 2.4 2.7 2.0 1.5 Food, non-alcoholic beverages 4.1 3.6 -0.3 4.4 4.4 3.6 4.1 2.3 1.0 -0.6 -1.0 -0.7 5.2 4.1 3.9 3.3 Alcoholic beverages, tobacco 6.5 7.0 3.6 9.5 10.6 7.5 7.4 3.0 2.7 4.4 3.6 3.7 11.2 10.7 10.0 7.8 Clothing and footwear -0.2 0.2 -0.9 -0.8 2.1 -1.2 1.0 -0.8 -0.9 -1.0 -0.1 -1.6 1.6 6.5 -1.3 0.0 Housing, water, electricity, gas 3.8 3.1 0.1 1.8 2.1 2.9 2.8 4.6 1.4 0.3 -0.3 -0.8 0.7 2.8 2.9 3.3 Furnishings, household equipment 0.1 -1.2 -1.2 -0.9 -1.1 -1.8 -1.2 -0.6 -0.9 -0.2 -2.0 -1.6 -0.5 -1.5 -1.1 -2.2 Medical, pharmaceutical products 0.4 -0.5 -0.1 0.3 -0.2 -2.1 0.4 0.1 -0.1 0.7 -0.9 -0.4 -0.1 0.2 -0.7 -2.0 Transport 3.3 0.3 0.2 3.5 1.5 -0.5 0.5 -0.4 -0.2 1.9 -0.1 -0.9 2.0 1.9 0.6 -0.9 Communications -2.4 -1.2 -1.9 -2.0 -3.8 -1.9 1.2 -0.1 -1.4 -0.5 -2.8 -2.8 -3.6 -4.6 -3.2 -2.2 Recreation and culture 1.4 0.1 0.7 0.4 -0.3 -0.5 0.6 0.4 0.4 -0.1 -0.2 3.0 -0.4 -0.4 -0.1 -0.4 Education 2.9 2.6 0.1 4.8 4.6 4.6 1.4 -0.1 -0.1 -0.2 0.0 0.8 4.6 4.7 4.7 4.6 Catering services 4.5 6.5 1.1 9.4 9.2 8.8 7.0 1.6 0.9 1.7 1.0 0.7 9.3 9.2 9.0 8.6 Miscellaneous goods & services 2.4 1.3 1.6 2.8 2.4 2.7 0.5 -0.5 1.8 1.9 1.6 1.2 2.4 2.5 2.4 2.1 HCPI 2.8 1.9 0.4 3.0 2.7 1.8 2.2 1.1 0.6 0.8 0.1 0.0 2.8 2.9 2.2 1.6 Core inflation (excluding fresh food and energy) 2.0 1.6 1.0 1.9 1.9 1.4 1.9 1.2 1.3 1.3 0.6 0.7 1.9 2.2 1.6 1.4 PRODUCER PRICE INDICES, y-o-y growth rates, % Total 0.9 0.0 -0.6 0.6 0.8 0.2 -0.2 -0.6 -0.8 -1.1 -0.5 -0.1 0.4 1.1 0.8 0.5 Domestic market 1.0 0.3 -1.1 1.2 1.1 0.3 0.1 -0.3 -1.0 -1.4 -1.1 -0.8 1.1 1.1 1.1 0.6 Non-domestic market 0.7 -0.2 -0.1 0.1 0.4 0.2 -0.6 -0.9 -0.6 -0.8 0.1 0.7 -0.3 1.0 0.5 0.5 euro area 0.1 -0.4 -0.7 -0.5 0.4 0.0 -0.7 -1.3 -1.4 -1.5 -0.6 0.8 -0.8 1.2 0.7 0.3 non-euro area 2.0 0.3 1.1 1.5 0.6 0.7 -0.3 0.0 1.1 0.8 1.8 0.6 1.0 0.6 0.2 0.8 Import price indices 1.9 -0.4 -1.4 3.2 0.8 -0.5 -0.3 -1.5 -2.1 -1.4 -1.0 -1.2 2.1 0.6 -0.3 -0.6 PRICE CONTROL,1 y-o-y growth rates, % Energy prices 12.7 0.2 11.6 5.6 0.1 -0.7 -4.1 -4.6 -0.2 -1.5 -1.0 7.5 6.4 2.9 -0.6 Oil products 13.0 1.7 12.6 6.4 0.4 0.4 -0.4 -0.9 4.2 1.7 -2.0 8.1 7.7 3.6 -0.8 Transport & communications 1.6 11.3 5.7 8.6 8.6 17.3 10.9 14.6 15.8 7.3 7.3 8.6 8.6 8.6 8.6 Other controlled prices2 -0.6 -1.5 -1.8 -3.9 -2.9 -0.8 1.5 2.2 5.7 3.2 3.2 -3.9 -3.9 -3.9 -3.8 Direct control - total 9.2 1.2 8.9 4.3 0.5 1.0 -0.8 -1.0 2.6 0.4 -0.1 5.6 4.9 2.4 -0.1 INDICATORS OF OVERALL COMPETITIVENESS3, y-o-y growth rates, % Effective exchange rate,4 nominal -1.2 1.0 0.2 -1.4 0.2 0.6 1.6 1.4 1.0 0.8 0.0 -0.8 0.1 0.4 0.1 0.2 Real (deflator HICP) -1.1 1.3 -0.1 -0.9 0.9 0.8 2.2 1.3 0.6 0.8 -0.7 -1.2 0.8 1.3 0.6 0.3 Real (deflator ULC) -3.1 0.3 -2.7 -1.4 0.0 0.5 2.1 -1.1 -2.2 -2.7 USD/EUR 1.2856 1.3282 1.3288 1.2974 1.3204 1.3066 1.3246 1.3611 1.3697 1.3712 1.3252 1.2492 1.3288 1.3359 1.2964 1.3026 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 Change of the source for effective exchange rate series as of April 2012: a new source, ECB; 4 Harmonised effective exchange rate - a group of 20 EU Member States and 17 euro area countries; an increase in value indicates appreciation of the national currency and vice versa. 2013 2014 2015 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 1.2 1.9 2.6 2.2 1.4 1.3 1.3 0.7 0.8 0.1 0.6 0.4 0.7 0.8 0.0 -0.3 -0.3 -0.1 -0.2 0.2 -0.5 3.1 4.4 4.4 4.3 3.5 2.4 2.2 2.2 1.6 0.9 0.4 0.0 -0.9 -1.0 -1.1 -1.5 -0.4 -0.5 -0.3 -1.2 -1.3 7.4 7.5 7.5 7.5 7.1 3.0 3.0 3.0 2.6 2.7 2.6 2.4 4.9 6.0 3.5 3.5 3.8 3.7 3.4 4 4.1 -3.1 -0.5 1.1 0.1 1.7 0.3 0.1 -2.9 -2.2 -3.2 2.5 -0.6 -1.1 -1.3 -0.5 1.7 -1.2 -1.7 -2.6 -0.5 1.4 2.8 2.5 3.4 2.7 2.1 3.9 4.8 5.2 3.6 0.4 0.1 -0.9 0.4 1.3 0.2 -0.5 -0.7 -0.6 -0.5 -1.3 -1.5 -1.9 -1.4 -1.3 -0.8 -1.5 -0.4 -0.4 -0.9 -1.4 -0.5 -0.7 -0.1 0.4 -0.7 -1.6 -2.3 -2.1 -2.3 -1.1 -1.3 -1.4 -2.1 -2.2 0.0 0.3 0.7 0.0 0.0 0.2 -0.2 -0.4 0.4 0.7 0.8 0.6 -0.7 -1.0 -0.9 -0.5 -0.4 -0.3 0.4 -0.9 0.2 2.0 0.0 -0.4 -0.6 -0.3 -0.3 0.1 -0.9 0.2 1.3 2.3 2.1 0.8 -0.2 -0.9 -0.4 -0.1 -2.2 -4.8 -2.3 -1.3 0.0 2.5 1.1 1.6 -0.5 -1.5 -1.6 -1.3 -1.4 -1.2 -0.9 0.6 -2.0 -3.1 -3.4 -3.5 -2.4 -2.5 -2.6 -0.5 -0.6 0.7 0.9 0.2 0.9 0.4 -0.1 0.7 0.3 0.0 0.5 -0.4 -0.3 -0.3 -0.5 0.1 1.8 3.0 4.2 4.1 4.6 4.6 4.6 0.1 -0.5 0.1 -0.3 0.0 0.0 -0.2 -0.2 -0.2 -0.2 -0.3 -0.3 -0.3 0.7 0.6 0.9 0.7 0.6 8.6 9.1 9.6 9.9 2.0 2.0 1.5 1.4 0.6 0.9 1.3 1.4 2.0 1.7 1.1 1.2 0.7 0.6 0.7 0.8 1.2 2.9 3.1 1.2 0.2 0.1 0.7 1.0 -3.2 1.7 1.7 1.9 1.9 1.9 1.7 1.6 1.5 1.7 1.5 -3.6 5.8 0.9 1.6 2.2 2.8 2.2 1.5 1.1 1.2 0.9 0.9 0.2 0.6 0.5 1.0 1.0 0.3 0.0 -0.1 0.1 0.1 -0.1 -0.7 1.3 1.5 2.0 2.1 1.7 1.6 1.4 0.7 1.2 1.1 1.6 1.3 1.4 1.4 0.8 0.7 0.5 0.4 0.4 1.3 1.1 0.2 0.0 -0.3 0.0 -0.4 -0.5 -0.7 -0.5 -0.5 -1.0 -0.9 -1.4 -1.1 -0.9 -0.6 -0.6 -0.3 0.0 0.0 -0.2 -0.1 0.1 0.1 0.1 0.2 0.1 -0.2 -0.4 -0.3 -0.3 -1.1 -1.5 -1.5 -1.5 -1.2 -1.0 -1.2 -1.1 -1.0 -0.9 -0.6 -0.6 0.3 -0.2 -0.6 -0.2 -0.9 -0.9 -1.1 -0.7 -0.6 -0.9 -0.4 -1.2 -0.7 -0.5 -0.2 0.0 0.6 1.1 0.8 0.3 0.3 0.0 -0.4 -0.8 -0.3 -1.0 -1.0 -1.5 -1.4 -1.2 -1.8 -1.2 -2.0 -1.4 -1.2 -1.2 -0.5 -0.1 0.8 0.8 0.8 0.8 1.1 0.3 -0.3 0.0 -0.6 -0.4 -0.3 0.8 0.8 1.1 1.3 0.6 0.9 0.9 1.9 1.3 2.2 1.8 0.9 -0.8 -0.6 -1.3 0.5 1.2 -0.4 -1.6 -1.5 -2.0 -0.9 -1.5 -2.0 -2.7 -1.9 -1.1 -1.2 -1.1 -0.8 -1.1 -0.5 -0.9 -2.3 -0.7 1.8 3.8 -1.3 -4.2 -5.9 -3.8 -2.5 -3.4 -5.7 -4.6 -2.9 0.9 1.3 0.2 -1.9 -2.9 0.5 0.7 -4.0 -9.8 -0.9 3.1 5.5 -0.3 -3.5 -2.4 -0.2 1.6 0.8 -2.5 -0.9 1.5 6.0 5.2 4.1 1.4 -0.3 -0.2 -0.1 -5.7 -13.2 8.6 8.6 17.3 17.3 17.3 17.3 8.0 8.0 14.6 14.6 14.6 15.8 15.8 15.8 7.3 7.3 7.3 7.3 7.3 7.3 1.1 -3.8 -1.1 -0.8 -0.8 -0.8 2.7 0.8 0.8 3.7 1.4 1.4 6.4 6.4 4.2 3.6 2.3 3.6 3.4 3.1 3.1 3.1 -0.3 2.0 4.3 0.5 -1.6 -1.4 -1.0 -0.1 0.1 -2.0 -1.2 0.6 3.6 3.6 1.9 0.0 -0.7 1.2 1.2 -2.6 -8.7 0.4 1.1 1.6 2.0 1.3 1.3 1.5 1.5 0.9 0.7 1.3 1.1 1.0 0.3 0.3 0.0 -0.3 -0.7 -0.7 -1.0 0.5 1.6 2.7 2.7 1.3 1.3 1.6 1.2 0.8 0.0 1.1 0.8 1.0 0.4 -0.1 -0.7 -1.2 -1.3 -1.2 -1.2 1.2982 1.3189 1.3080 1.3310 1.3348 1.3635 1.3493 1.3704 1.3610 1.3659 1.3823 1.3813 1.3732 1.3592 1.3539 1.3316 1.2901 1.2673 1.2472 1.2331 BALANCE OF PAYMENTS 2012 2013 2014 2012 2013 2014 2012 2013 Q4 Q1 1 Q2 1 Q3 1 Q4 Q1 1 Q2 1 Q3 1 Q4 12 1 1 2 1 3 BALANCE OF PAYMENTS, BPM6 methodology, EUR m Current account 954 2,027 2,187 463 482 587 477 480 342 567 628 649 53 85 93 304 Goods -36 763 1,330 82 206 262 247 48 299 314 329 387 -106 -22 69 159 Exports 21,256 21,692 23,100 5,347 5,323 5,540 5,330 5,499 5,581 5,743 5,749 6,028 1,501 1,695 1,704 1,925 Imports 21,292 20,929 21,770 5,265 5,116 5,279 5,083 5,451 5,282 5,429 5,419 5,640 1,607 1,716 1,635 1,765 Services 1,509 1,755 1,708 332 400 485 532 339 322 434 566 387 69 138 100 162 Exports 5,106 5,308 5,517 1,290 1,141 1,304 1,550 1,313 1,177 1,372 1,584 1,383 432 373 343 425 Imports 3,597 3,553 3,809 958 741 819 1,018 974 855 939 1,018 997 363 235 243 263 Primary income -292 -243 -599 16 28 -76 -192 -2 -114 -111 -196 -177 25 -6 17 17 Receipts 1,138 1,015 1,227 314 256 270 219 270 307 361 255 304 158 49 70 137 Expenditures 1,430 1,258 1,826 299 228 346 411 272 421 472 451 482 133 54 53 120 Secondary income -227 -249 -252 34 -152 -83 -110 95 -165 -69 -70 53 65 -26 -92 -34 Receipts 931 923 933 293 196 191 201 334 180 239 194 320 140 74 63 59 Expenditures 1,157 1,172 1,185 260 348 274 310 239 345 308 264 267 75 100 155 93 Capital account 41 109 79 -16 31 -4 5 76 0 -39 12 106 14 12 7 12 Financial account 1,028 2,887 3,440 404 892 646 712 637 546 693 1,076 1,126 -211 420 104 367 Direct investment -466 -60 -1,118 15 47 177 -101 -182 -82 -664 -413 41 -30 -41 51 38 Assets -439 5 -2 -45 69 28 -125 32 100 2 -114 10 -115 5 44 20 Liabilities 27 64 1,117 -59 22 -149 -23 214 182 666 299 -30 -85 47 -7 -18 Portfolio investment 220 -3,976 -3,969 -1,566 -131 -2,095 423 -2,174 -3,097 -1,220 80 268 56 154 -16 -269 Financial derivatives 89 32 1 15 20 -13 10 15 -2 -9 2 10 6 15 2 4 Other investment 1,215 6,886 8,438 1,959 1,022 2,558 297 3,009 3,569 2,577 1,481 810 -262 315 78 628 Assets 1,634 2,241 5,765 258 1,209 772 -26 286 1,836 2,217 701 1,010 -463 341 282 587 Other equity 155 152 37 145 14 69 2 68 14 70 1 -48 5 0 1 12 Currency and deposits 1,216 2,069 6,035 126 865 546 119 538 1,639 2,151 871 1,375 -428 286 225 353 Loans 371 -1 -299 298 -29 171 -96 -47 -78 -48 -98 -75 272 -3 -9 -18 Insurance, pension schemes, and standardised guarantee schemes 28 -10 10 16 12 -18 0 -4 17 -3 -4 0 5 4 4 4 Trade credit and advances -49 24 -4 -312 342 1 -43 -277 204 83 -50 -240 -283 48 60 233 Other assets -88 7 -15 -17 5 3 -8 7 40 -35 -19 -1 -34 4 0 1 Liabilities 418 -4,645 -2,673 -1,702 187 -1,786 -323 -2,723 -1,733 -360 -780 200 -201 26 203 -42 Other equity 0 0 -6 0 0 0 0 0 0 0 -1 -5 0 0 0 0 Currency and deposits 1,026 -4,246 -1,199 -1,503 188 -1,981 429 -2,883 -1,176 -117 -6 100 -136 274 234 -319 Loans -938 -269 -1,387 -310 317 63 -558 -91 -366 -297 -707 -17 -144 17 -149 448 Insurance, pension schemes, and standardised guarantee schemes 41 39 -44 17 21 31 -10 -2 -1 -40 -2 0 6 7 7 7 Trade credit and advances 285 -184 -150 73 -333 73 -163 238 -203 81 -46 18 54 -260 108 -180 Other liabilities 5 15 113 21 -6 28 -21 14 14 13 -19 105 20 -12 4 2 Special drawing rights (SDR) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Reserve assets -31 5 89 -19 -67 19 83 -30 157 8 -74 -3 18 -22 -11 -33 Net errors and omissions 33 752 1,174 -42 378 63 230 81 204 164 436 370 -278 323 4 51 EXPORTS AND IMPORTS BY END-USE OF PRODUCTS, in EUR m Export of investment goods 2,112 2,163 N/A 552 521 533 531 579 552 590 571 N/A 168 157 160 203 Intermediate goods 12,138 12,425 N/A 2,955 3,051 3,159 3,115 3,100 3,260 3,270 3,260 N/A 777 998 980 1,073 Consumer goods 6,811 6,960 N/A 1,788 1,673 1,824 1,672 1,791 1,776 1,875 1,889 N/A 550 508 555 611 Import of investment goods 2,402 2,573 N/A 687 646 667 564 696 645 694 630 N/A 259 197 195 254 Intermediate goods 14,005 13,635 N/A 3,382 3,457 3,448 3,282 3,448 3,315 3,387 3,397 N/A 978 1,218 1,104 1,136 Consumer goods 5,671 5,906 N/A 1,486 1,392 1,485 1,475 1,554 1,519 1,608 1,600 N/A 448 444 465 482 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. 2013 2014 4 1 5 1 6 1 7 1 8 1 9 1 10 1 11 1 12 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 1 10 1 11 1 12 263 108 215 142 144 191 180 91 209 69 -12 285 256 124 187 210 98 320 292 101 256 138 -15 138 154 -1 94 68 -1 -20 81 48 170 143 21 151 139 -21 212 191 62 135 1,921 1,809 1,810 1,925 1,511 1,894 1,994 1,866 1,639 1,806 1,769 2,005 1,954 1,850 1,939 2,039 1,557 2,153 2,178 2,007 1,842 1,782 1,824 1,672 1,772 1,512 1,800 1,926 1,867 1,658 1,725 1,721 1,835 1,811 1,829 1,788 1,900 1,578 1,941 1,987 1,945 1,708 152 168 165 188 199 145 132 116 92 95 88 139 148 139 146 184 221 160 130 130 126 424 432 448 531 541 478 447 413 453 388 354 435 457 445 471 546 540 498 475 417 491 272 264 283 343 342 333 315 297 362 293 266 296 308 306 324 361 319 337 345 286 366 18 -15 -80 -142 -18 -33 -19 -12 30 -64 -64 14 2 -31 -83 -58 -67 -72 -60 -85 -31 120 92 58 80 76 62 60 67 142 70 78 159 156 111 93 93 76 86 85 77 142 102 107 137 222 94 95 80 80 112 133 142 146 154 142 176 150 143 157 146 163 173 -45 -30 -8 -57 -36 -16 -1 -12 108 -44 -84 -37 -37 -5 -27 -55 -35 20 31 -6 27 53 57 82 65 58 77 79 63 192 62 59 59 73 94 72 58 42 94 120 81 120 97 87 90 123 94 93 80 75 84 106 144 96 110 99 99 114 76 74 88 87 93 12 -14 -1 16 0 -11 22 9 45 1 0 -2 7 -29 -16 19 -17 10 20 52 34 295 102 250 129 293 290 468 126 44 90 -73 529 277 133 283 300 166 611 182 270 673 272 -43 -53 -101 51 -51 -195 35 -23 11 -97 4 -132 -161 -371 -21 -150 -242 -25 21 44 128 -7 -92 -33 -48 -43 7 68 -43 73 -21 48 4 -25 23 48 -138 -25 115 -6 -99 -144 36 -40 68 -99 8 202 33 -21 62 76 44 136 135 394 69 13 217 140 -27 -143 145 -2,589 349 130 89 204 24 -1,824 -374 -408 -2,738 50 -946 -219 -55 -312 106 286 424 -662 505 -18 14 -9 6 2 2 5 1 9 -1 -3 2 -10 2 -1 4 -3 0 11 -3 3 -88 2,745 -99 12 154 131 634 1,908 467 427 2,649 493 1,371 500 706 630 233 617 -214 876 148 161 453 158 49 -130 55 475 156 -346 439 1,219 178 1,267 358 593 325 39 337 -99 694 416 70 0 -1 0 1 0 70 -4 2 2 5 6 69 0 1 0 0 0 0 0 -48 72 437 37 76 103 -60 342 98 99 359 1,168 111 1,117 440 594 465 133 273 -236 781 830 67 71 33 -12 -82 -2 31 12 -90 7 -26 -59 24 -22 -50 -69 1 -30 3 -32 -46 -6 -6 -6 0 0 0 -1 -1 -1 6 6 6 -1 -1 -1 -1 -1 -1 0 0 0 -42 -43 86 -16 -144 118 35 2 -314 24 105 75 87 -75 71 -55 -109 115 101 -26 -315 1 -6 9 1 -8 0 -1 48 -41 41 -39 38 -29 16 -22 -14 15 -19 33 -29 -5 250 -2,292 257 37 -285 -76 -158 -1,752 -813 13 -1,430 -315 -105 -143 -112 -306 -194 -280 114 -182 268 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -1 0 0 -5 0 0 68 -2,299 251 524 -250 155 -259 -1,843 -780 224 -1,296 -104 -58 -19 -40 -9 47 -44 8 -34 126 193 -31 -99 -344 48 -262 10 -20 -81 14 -188 -192 39 -160 -176 -165 -255 -286 -96 -93 172 10 10 10 -3 -3 -3 -1 -1 -1 0 0 0 -13 -13 -13 -1 -1 -1 0 0 0 -12 15 69 -136 -63 37 89 107 43 -267 68 -3 -58 14 126 -106 -3 63 88 -20 -50 -10 12 26 -2 -16 -3 3 4 7 44 -14 -16 -14 36 -9 -24 18 -13 119 -36 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -17 -25 61 82 -3 4 -1 6 -35 62 116 -21 -7 11 4 -2 -20 -52 -14 38 -27 19 8 36 -30 150 110 266 25 -211 20 -62 245 14 39 112 71 84 280 -131 117 384 182 178 173 204 149 178 197 197 185 168 179 204 202 183 204 207 161 204 226 201 N/A 1,102 1,045 1,012 1,115 912 1,088 1,163 1,069 869 1,089 1,030 1,142 1,121 1,066 1,083 1,158 903 1,199 1,204 1,103 N/A 632 577 614 604 449 619 623 599 569 559 570 646 634 584 657 663 476 750 728 708 N/A 219 260 189 204 155 205 221 241 234 186 202 256 242 225 227 229 181 220 264 267 N/A 1,195 1,196 1,057 1,165 987 1,130 1,237 1,208 1,003 1,123 1,063 1,130 1,115 1,146 1,126 1,198 980 1,218 1,211 1,204 N/A 491 489 505 509 438 528 549 516 490 474 518 527 547 550 511 549 473 579 591 550 N/A MONETARY INDICATORS AND INTEREST RATES 2012 2013 2014 2012 2013 8 1 9 1 10 1 11 1 12 1 1 2 1 3 1 4 1 5 1 6 SELECTED CLAIMS OF OTHER MFI ON DOMESTIC SECTORS, end of the month, in EUR m Claims of the BS on central government 221 233 263 227 207 226 224 221 232 233 229 233 233 233 Central government (S. 1311) 5,057 6,563 7,240 4,805 4,874 5,138 5,144 5,057 5,036 5,111 5,048 5,451 5,361 4,999 Other government (S. 1312, 1313, 1314) 610 581 685 590 585 583 580 610 609 613 609 610 600 600 Households (S. 14, 15) 9,267 8,917 8,763 9,346 9,338 9,341 9,318 9,267 9,191 9,160 9,159 9,141 9,107 9,099 Non-financial corporations (S. 11) 19,470 14,902 11,735 20,488 20,398 20,294 20,044 19,470 19,425 19,265 19,152 19,022 18,889 18,832 Non-monetary financial institutions (S. 123, 124, 125) 2,135 1,763 1,488 2,244 2,210 2,204 2,186 2,135 2,116 2,102 2,028 2,000 1,990 1,999 Monetary financial institutions (S. 121, 122) 5,194 5,020 3,684 5,237 5,210 4,930 5,012 5,194 5,085 5,300 5,389 4,957 5,423 5,255 Claims on domestic sectors, TOTAL In domestic currency 34,558 29,620 25,157 35,422 35,316 35,131 34,943 34,558 34,349 34,342 34,336 33,765 34,040 33,902 In foreign currency 1,309 1,097 950 1,402 1,372 1,354 1,348 1,309 1,263 1,277 1,264 1,236 1,235 1,223 Securities, total 5,862 7,026 7,475 5,886 5,928 6,004 5,990 5,862 5,846 5,927 5,780 6,177 6,091 5,657 SELECTED OBLIGATIONS OF OTHER MFI ON DOMESTIC SECTORS, end of the month, in EUR m Deposits in domestic currency, total 29,582 27,051 25,843 29,591 29,354 29,460 30,062 29,582 29,575 29,961 30,070 29,665 30,497 29,943 Overnight 8,678 8,558 10,157 8,633 8,523 8,651 8,763 8,678 8,726 9,185 8,997 8,919 8,806 8,923 With agreed maturity -short-term 7,056 6,689 5,955 7,052 6,964 6,980 7,417 7,056 6,905 6,827 7,140 7,148 7,712 7,626 With agreed maturity -long-term 13,780 11,569 9,267 13,851 13,751 13,755 13,763 13,780 13,863 13,829 13,775 13,424 13,787 13,189 Short-term deposits redeemable at notice 68 235 464 55 116 74 119 68 81 120 158 174 192 205 Deposits in foreign currency, total 552 487 510 591 579 571 576 552 538 554 549 520 548 536 Overnight 372 324 354 412 397 388 399 372 372 383 363 361 354 340 With agreed maturity -short-term 123 91 84 119 124 126 119 123 109 114 128 103 103 113 With agreed maturity -long-term 56 72 72 59 57 56 57 56 56 56 57 55 91 82 Short-term deposits redeemable at notice 1 0 0 1 1 1 1 1 1 1 1 1 0 1 INTEREST RATES OF MONETARY FINANCIAL INSTITUTIONS, % New deposits in domestic currency Households Overnight deposits 0.20 0.11 0.07 0.19 0.18 0.17 0.17 0.17 0.14 0.13 0.13 0.13 0.12 0.11 Time deposits with maturity of up to one year 2.31 1.86 0.98 2.23 2.23 2.28 2.28 2.24 2.28 2.18 2.10 2.01 2.01 1.97 New loans to households in domestic currency Housing loans, 5-10 year fixed interest rate 5.48 5.40 5.06 5.41 5.62 5.53 6.00 5.31 5.46 6.40 5.03 5.49 5.39 5.30 New loans to non-financial corporations in domestic currency Loan over EUR 1 million, 1-5 year fixed interest rate 5.32 3.86 4.41 5.06 6.52 6.51 5.48 5.57 3.75 3.76 3.70 3.48 5.68 INTEREST RATES OF THE EUROPEAN CENTRAL BANK, % Main refinancing operation^ 0.8^ 0.5^ 0.1^ 0.7^ 0.7^ 0.7^ 0.7^ 0.7^ 0.7^ 0.7^ 0.7^ 0.7^ 0.5^ 0.50 INTERBANK INTEREST RATES EURIBOR 3-month rates 0.57 0.22 0.21 0.330 0.246 0.208 0.192 0.186 0.204 0.223 0.206 0.209 0.201 0.210 6-month rates 0.83 0.34 0.31 0.604 0.484 0.412 0.360 0.323 0.343 0.362 0.329 0.324 0.299 0.321 LIBOR 3-month rates | 0.0^ 0.0^ 0.0^ 0.05^ 0.04^ 0.03^ 0.03^ 0.01^ 0.01^ 0.02^ 0.02^ 0.02^ 0.01^ 0.018 Source of data: BS, EUROSTAT. 2013 2014 7 1 8 1 9 1 10 1 11 1 12 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 1 10 1 11 1 12 233 232 231 232 233 233 239 239 245 209 227 228 229 230 230 237 246 263 5,108 5,024 4,995 4,965 4,881 6,563 6,448 6,437 6,476 6,154 6,262 6,296 6,459 6,512 6,581 6,936 7,010 7,240 601 601 604 610 570 581 585 585 584 582 577 582 594 596 606 611 618 685 9,050 9,059 9,052 9,031 8,996 8,917 8,879 8,849 8,853 8,850 8,835 8,810 8,808 8,814 8,813 8,807 8,791 8,763 18,639 18,633 18,501 18,102 17,918 14,902 14,691 14,599 14,544 14,531 14,429 14,039 13,867 13,764 13,586 12,603 12,511 11,735 1,992 1,983 1,978 1,962 1,966 1,763 1,993 1,968 1,962 1,945 1,929 1,921 1,881 1,858 1,873 1,665 1,654 1,488 5,190 5,320 5,311 5,198 4,752 5,020 5,014 5,294 4,818 5,012 4,863 3,896 4,347 4,108 3,732 4,037 3,915 3,684 33,612 33,754 33,705 33,198 32,569 29,620 29,594 29,706 29,154 29,298 29,017 27,756 28,005 27,645 27,220 26,425 26,191 25,157 1,203 1,192 1,177 1,152 1,144 1,097 1,090 1,075 1,046 1,036 1,025 1,019 1,010 1,011 994 986 973 950 5,762 5,669 5,554 5,513 5,366 7,026 6,921 6,944 7,028 6,731 6,845 6,763 6,933 6,987 6,968 7,240 7,326 7,475 30,228 30,184 30,194 30,091 29,645 27,051 27,255 27,501 27,034 27,187 27,067 26,577 27,060 26,869 26,318 26,492 26,309 25,843 9,124 9,055 8,812 8,861 8,729 8,558 8,779 9,066 8,979 9,278 9,390 9,582 10,236 10,138 9,870 10,329 10,398 10,157 7,652 7,696 8,260 8,222 8,110 6,689 6,730 6,888 6,893 7,215 7,088 6,768 6,876 6,928 6,720 6,477 6,250 5,955 13,203 13,159 12,843 12,688 12,495 11,569 11,422 11,264 10,852 10,389 10,252 9,875 9,585 9,368 9,265 9,172 9,155 9,267 249 274 279 320 311 235 324 283 310 305 337 352 363 435 463 514 506 464 520 541 521 506 511 487 493 488 490 496 496 508 510 516 538 528 535 510 342 362 333 324 334 324 328 324 333 335 336 350 345 354 354 348 353 354 97 95 109 104 98 91 93 93 90 94 92 90 96 92 115 110 110 84 81 84 79 78 79 72 72 71 67 67 68 68 69 70 69 70 72 72 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.10 0.10 0.10 0.10 0.09 0.09 0.09 0.08 0.08 0.08 0.08 0.08 0.07 0.07 0.07 0.07 0.06 0.06 1.89 1.78 1.65 1.56 1.48 1.46 1.36 1.22 1.15 1.07 1.04 1.00 0.93 0.89 0.85 0.81 0.74 0.66 5.34 5.31 5.11 5.49 5.17 5.36 5.38 5.42 5.26 5.58 5.23 4.84 5.2 5.01 5.09 4.65 4.72 4,38 3.03 2.66 3.37 3.73 4.71 4.59 6.58 3.96 4.21 6.63 5.51 1.53 5.05 2.82 4.66 3.07 4.50 0.5^ 0.5^ 0.5^ 0.5^ 0.2^ 0.2^ 0.2^ 0.2^ 0.2^ 0.2^ 0.2^ 0.1^ 0.1^ 0.1^ 0.0^ 0.0^ 0.0^ 0.05 0.221 0.226 0.223 0.226 0.223 0.275 0.292 0.288 0.305 0.330 0.325 0.241 0.205 0.192 0.097 0.083 0.081 0.081 0.336 0.342 0.340 0.342 0.327 0.373 0.396 0.387 0.407 0.430 0.417 0.333 0.305 0.292 0.200 0.184 0.182 0.176 0.02^ 0.01^ 0.02^ 0.02^ 0.02^ 0.02^ 0.02^ 0.01^ 0.02^ 0.01^ 0.01^ 0.01^ 0.01^ 0.02^ 0.00^ 0.00^ 0.00^ -0.003 PUBLIC FINANCE 2012 2013 2014 2012 2013 2014 2013 Q4 Q1 1 Q2 1 Q3 1 Q4 Q1 1 Q2 1 Q3 1 Q4 5 1 6 CONSOLIDATED BALANCE OF PUBLIC FINANCING (GFS-IMF methodology), current prices, EUR m GENERAL GOVERNMENT REVENUES TOTAL REVENUES 14,999.1 14,728.2 15,492.0 4,091.3 3,419.9 3,495.0 3,733.1 4,080.2 3,634.1 3,905.1 3,686.5 4,266.2 1,133.7 1,174.3 Current revenues 14,030.6 13,637.4 14,377.0 3,766.5 3,184.6 3,293.1 3,510.9 3,648.8 3,409.9 3,695.2 3,501.4 3,770.4 1,060.8 1,124.5 Tax revenues 13,118.3 12,648.4 13,191.6 3,461.2 2,946.8 3,107.4 3,188.1 3,406.0 3,147.0 3,317.0 3,237.5 3,490.1 997.0 1,063.9 Taxes on income and profit 2,656.6 2,137.4 2,385.9 793.0 577.1 510.9 442.5 606.9 595.6 686.3 466.3 637.7 163.5 276.6 Social security contributions 5,244.1 5,127.2 5,272.5 1,262.4 1,264.9 1,283.4 1,261.3 1,317.6 1,303.9 1,302.5 1,300.7 1,365.3 426.3 424.7 Taxes on payroll and workforce 25.6 23.4 20.2 6.1 5.5 6.1 5.5 6.3 4.8 5.3 4.7 5.4 2.0 2.0 Taxes on property 233.9 254.1 244.2 63.1 24.2 67.8 91.3 70.8 19.2 29.3 100.3 95.4 30.4 20.1 Domestic taxes on goods and services 4,876.1 5,027.4 5,191.2 1,303.4 1,039.2 1,224.7 1,357.0 1,406.5 1,170.9 1,300.1 1,350.5 1,369.6 375.5 328.1 Taxes on international trade & transactions 82.5 77.5 77.7 20.5 19.4 22.9 18.2 17.0 19.1 19.0 18.5 21.1 7.6 7.0 Other taxes -0.6 1.3 -0.2 12.6 16.5 -8.4 12.4 -19.2 33.5 -25.7 -3.5 -4.5 -8.2 5.5 Non-tax revenues 912.3 989.0 1,185.4 305.3 237.8 185.7 322.8 242.7 262.9 378.2 264.0 280.3 63.9 60.6 Capital revenues 62.5 67.1 51.4 29.5 10.7 13.1 12.8 30.4 11.6 10.5 13.1 16.2 4.6 4.4 Grants 9.2 32.7 18.9 4.5 12.9 2.7 14.7 2.4 1.3 11.0 4.3 2.2 0.3 1.4 Transferred revenues 51.7 52.7 4.5 1.1 0.5 0.4 50.9 0.9 1.4 0.4 0.5 2.3 0.0 0.3 Receipts from the EU budget 845.1 938.4 1,040.3 289.7 211.2 185.6 143.8 397.7 209.9 188.0 167.2 475.2 67.9 43.6 GENERAL GOVERNMENT EXPENDITURES TOTAL EXPENDITURES 16,125.7 16,286.4 16,751.2 4,105.7 4,137.4 4,011.6 3,846.2 4,291.2 4,290.2 3,957.1 4,009.3 4,494.6 1,260.2 1,299.3 Current expenditures 6,813.5 6,838.4 7,042.1 1,596.6 1,842.8 1,819.0 1,496.7 1,679.8 1,923.6 1,692.4 1,581.3 1,844.8 519.2 572.5 Wages, salaries and other personnel expenditures 3,727.7 3,616.7 3,610.4 884.7 908.5 936.6 871.2 900.4 919.5 908.4 883.3 899.2 280.7 361.5 Expenditures on goods and services 2,373.0 2,238.9 2,232.3 633.1 559.1 565.9 526.7 587.2 531.7 538.8 546.9 614.8 194.0 174.3 Interest payments 647.9 840.1 1,097.4 55.3 319.1 295.2 77.8 148.0 451.8 221.9 131.0 292.6 38.8 28.5 Reserves 64.9 142.6 102.1 23.4 56.2 21.3 20.8 44.2 20.5 23.3 20.1 38.2 5.7 8.3 Current transfers 7,687.0 7,671.3 7,591.9 1,947.8 1,948.5 1,893.7 1,922.4 1,906.6 1,984.3 1,848.4 1,883.4 1,875.8 633.4 622.9 Subsidies 502.7 519.5 467.4 160.5 190.5 111.9 77.5 139.6 205.5 80.3 71.3 110.2 44.7 34.1 Current transfers to individuals and households 6,384.2 6,343.1 6,335.0 1,549.7 1,576.7 1,585.9 1,626.0 1,554.5 1,561.9 1,600.0 1,621.1 1,552.1 525.4 526.0 Current transfers to non-profit institutions, other current domestic transfers 741.0 734.2 714.3 216.8 158.1 185.2 185.7 205.3 204.5 147.7 173.2 188.8 57.7 60.3 Current transfers abroad 59.0 74.4 75.2 20.8 23.3 10.7 33.2 7.2 12.3 20.4 17.8 24.7 5.6 2.5 Capital expenditures 915.0 1,031.8 1,444.4 347.2 141.6 146.3 259.7 484.2 188.1 269.8 414.6 572.0 50.6 57.5 Capital transfers 319.9 319.5 270.0 154.3 42.5 52.0 69.3 155.6 31.5 50.7 67.9 119.8 23.3 12.7 Payments to the EU budget 390.3 425.5 402.9 59.9 161.8 100.5 98.0 65.0 162.7 95.9 62.2 82.1 33.7 33.6 SURPLUS / DEFICIT -1,126.6 -1,558.2 -1,259.2 -14.4 -717.5 -516.6 -113.1 -211.0 -656.1 -52.0 -322.8 -228.3 -126.5 -125.0 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. 2013 2014 7 1 8 1 9 1 10 1 11 1 12 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 1 10 1 11 1 12 1,290.1 1,204.9 1,238.2 1,275.2 1,201.0 1,604.1 1,231.9 1,196.6 1,205.6 1,286.1 1,337.4 1,281.7 1,175.8 1,166.8 1,343.9 1,382.2 1,317.0 1,567.1 1,225.5 1,159.5 1,125.9 1,210.9 1,144.3 1,293.5 1,199.3 1,140.1 1,070.6 1,185.4 1,279.3 1,230.5 1,130.0 1,147.2 1,224.2 1,260.4 1,185.2 1,324.8 1,061.0 1,063.1 1,064.0 1,142.4 1,067.1 1,196.5 1,135.8 994.4 1,016.8 1,116.3 1,072.3 1,128.4 1,029.8 1,058.3 1,149.4 1,157.6 1,117.5 1,215.0 62.6 188.7 191.2 187.8 190.0 229.1 207.0 199.3 189.3 241.3 185.7 259.4 75.3 191.5 199.5 197.0 204.1 236.6 423.0 419.4 418.9 420.1 427.8 469.7 430.5 445.0 428.5 435.7 432.5 434.2 436.8 432.9 431.1 438.2 439.1 488.0 2.2 1.6 1.6 1.9 2.0 2.5 1.7 1.4 1.6 1.8 1.7 1.8 1.9 1.4 1.5 1.6 1.6 2.1 32.1 29.3 29.8 19.9 35.7 15.3 6.8 6.6 5.9 11.9 6.0 11.4 23.6 37.5 39.2 27.6 40.4 27.4 527.3 408.0 421.6 512.7 408.8 485.0 478.9 329.6 362.4 444.9 439.2 416.0 489.1 383.2 478.2 485.4 421.5 462.7 6.6 6.3 5.3 5.8 6.1 5.1 5.0 7.2 6.9 6.6 5.7 6.7 6.2 5.9 6.3 6.9 6.7 7.6 7.2 9.7 -4.5 -5.8 -3.2 -10.2 6.0 5.3 22.2 -25.9 1.4 -1.2 -3.0 5.9 -6.4 0.9 4.1 -9.4 164.5 96.4 61.9 68.5 77.2 97.0 63.5 145.7 53.8 69.1 207.0 102.2 100.3 88.9 74.8 102.8 67.7 109.8 5.8 2.7 4.4 4.7 5.5 20.2 3.8 4.4 3.4 3.0 3.5 4.0 4.7 3.9 4.4 4.1 4.0 8.1 10.4 0.2 4.0 0.3 0.5 1.6 0.6 0.1 0.6 1.0 0.5 9.5 0.3 0.2 3.8 0.8 1.1 0.3 0.3 0.4 50.2 0.3 0.5 0.2 0.7 0.1 0.6 0.1 0.2 0.2 0.1 0.2 0.1 1.3 0.4 0.5 48.0 42.0 53.8 59.0 50.2 288.5 27.4 52.0 130.5 96.6 53.8 37.5 40.6 15.3 111.3 115.6 126.3 233.3 1,373.0 1,179.8 1,293.4 1,332.4 1,367.6 1,591.3 1,439.9 1,474.7 1,375.6 1,335.2 1,326.2 1,295.8 1,411.8 1,279.4 1,318.2 1,500.5 1,389.9 1,604.2 503.8 460.8 532.1 532.6 565.1 582.1 624.9 672.0 626.6 622.5 536.0 533.9 516.5 524.0 540.7 686.6 568.3 589.9 295.0 290.5 285.7 285.1 295.5 319.8 299.6 345.1 274.9 287.5 290.5 330.4 299.5 294.0 289.8 294.6 293.1 311.5 198.3 161.0 167.4 173.1 183.1 231.1 176.4 184.2 171.1 183.3 165.5 190.0 207.9 169.9 169.1 179.6 182.4 252.8 3.9 1.7 72.2 66.8 78.8 2.3 141.9 135.9 173.9 143.0 73.3 5.7 3.4 53.2 74.4 204.6 84.5 3.6 6.5 7.6 6.8 7.6 7.7 28.9 7.0 6.8 6.7 8.8 6.8 7.7 5.8 6.9 7.4 7.8 8.3 22.0 731.8 582.5 608.2 617.1 628.6 660.9 697.0 652.4 634.9 590.1 644.3 614.0 717.7 580.1 585.6 599.7 618.5 657.7 28.4 21.2 27.9 34.4 48.5 56.6 119.7 65.7 20.2 31.9 33.2 15.1 31.0 18.1 22.2 23.9 43.8 42.5 610.4 503.5 512.1 516.7 513.9 523.9 514.9 524.3 522.8 531.0 543.8 525.1 613.3 502.8 505.0 513.3 517.6 521.2 67.1 53.7 64.8 63.2 63.3 78.8 56.5 57.4 90.7 25.1 55.8 66.8 59.3 56.7 57.1 59.2 54.3 75.3 25.8 4.0 3.4 2.7 2.9 1.6 6.0 5.0 1.3 2.0 11.4 7.0 14.0 2.4 1.3 3.3 2.7 18.7 80.9 83.2 95.5 122.6 125.2 236.4 68.6 59.1 60.4 75.0 92.5 102.3 129.7 131.4 153.4 151.2 141.8 279.0 23.0 21.3 25.1 41.5 29.6 84.5 1.7 9.4 20.4 14.8 20.3 15.6 22.6 22.8 22.4 44.3 31.0 44.5 33.5 32.0 32.5 18.6 19.1 27.3 47.7 81.7 33.3 32.7 33.1 30.0 25.2 21.0 16.0 18.7 30.3 33.1 -82.9 25.0 -55.2 -57.2 -166.6 12.8 -208.0 -278.0 -170.0 -49.1 11.2 -14.1 -236.0 -112.6 25.7 -118.4 -72.8 -37.1 Acronyms Acronyms in the text ABSPP - Asset Backed Securities Purchase Programme, BoS - Bank of Slovenia, CBPP - Covered Bond Purchase Programme, CNY - Chinese yuan, CPI - Consumer Price Index, CIT - Corporate income tax, EC - European Commission, ECB -European Central Bank, EIA - Energy Information Administration, ESI - Economic Sentiment Indicator, ESS - Employment Service of Slovenia, EU - European System of Integrated Social Protection Statistics, EUROSTAT - Statistical Office of the European Union, GBP - British pound, GDP - Gross domestic product, HICP-Harmonised Index of Consumer Prices, ICT - Information and Communication Technology, ifo - Institut für Wirtschaftsforschung, IMAD - Institute of Macroeconomic Analysis and Development, IMF - International Monetary Fund, KRW - South Korean won, MF -Ministry of Finance, NFI - Non-monetary Financial Institutions, OI - core inflation, OPEC - Organization of Petroleum Exporting Countries, RS - Republic of Slovenia, RULC - Relative Unit Labor Cost, SCA - Standard Classification of Activities, SMA - Securities Market Agency, SRE - Statistical Register of Employment, SURS - Statistical Office of the Republic of Slovenia, TLTRO - Targeted Longer Term Refinancing Operations, USD - US Dollar, VAT - value added tax, Acronyms of Standard Classification of Activities (SCA) 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 ofrecorded 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 ofmotor 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, steamand air conditioning supply,E-Water supply sewerage, waste management and remediationactivities, 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. Slovenian economic mirror February 2015, No. 2, Vol. XXI