.^'IMAD O fü Q) £ u £ o o Ü) o u 0) >< m cB fO .Q cu Slovenian Economic Mirror ISSN 1318-3826 No. 2 / Vol. XIX / 2013 Publisher: IMAD, Ljubljana, Gregorčičeva 27 Responsible Person: Boštjan Vasle, MSc, Director Editor in Chief: Barbara Ferk, MSc Authors of Current Economic Trends (listed alphabetically): Jure Brložnik, Gonzalo Caprirolo, MSc, Janez Dodič, Marjan Hafner, Matevž Hribernik, Slavica Jurančič, Mojca Koprivnikar Šušteršič, Janez Kušar, Urška Lušina, MSc, Jože Markič, PhD, Tina Nenadič, MSc, Mitja Perko, MSc, Jure Povšnar, Ana T. Selan, MSc, Dragica Šuc, MSc Authors of Selected Topics: Dragica Šuc, MSc (Drawing on Cohesion Policy funds in the programming period 2007-2012) Editorial Board: Lidija Apohal Vučkovič, Marijana Bednaš, MSc, 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: SORS Circulation: 90 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.......................................................................................................................................................17 Financial markets.............................................................................................................................................................18 Public finance....................................................................................................................................................................20 Boxes Box 1: GDP in Slovenia in 2012........................................................................................................................................9 Box 2: Public utility pricing and control in light of the new decree.......................................................................15 Selected topics Drawing on Cohesion Policy funds in the programming period 2007-2012.......................................................25 Statistical appendix.....................................................................................................................................................29 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 SORS website http://www.stat.si/enq/ skd nace 2008.asp. All seasonally adjusted data in the Economic Mirror are calculations by IMAD. In the spotlight In Q4 2012, euro area GDP recorded its third drop in a row, and in February, the EC lowered its forecasts for economic activity. Euro area GDP was down 0.6% in the last quarter of 2012. The EC's winter forecast predicts that real GDP in the euro area will fall by 0.3% this year. According to the EC, tensions on international financial markets are easing. Confidence indicators have also been improving since the beginning of the year. As a result of lower GDP in the last quarter of 2012, in particular, the level of economic activity in 2013 as a whole will be lower than it was last year, despite the gradual recovery based on external demand predicted for the end of the year. The expected renewed growth in GDP in 2014 will rely on domestic demand. However, the Commission also warns of considerable downside risks that might deepen the decline in activity this year. In Q4 2012, Slovenia's GDP declined by 1.0% and in 2012 as a whole, by 2.3%. Last year's contraction of economic activity was marked by stagnant exports and falling domestic consumption. Following two years of recovery, exports were, amid the deterioration in the international environment, up by a mere 0.3%. Investment continued to shrink (-9.3%), particularly in construction. Investment in machinery and equipment also dropped again after 2011 growth. As a result of measures to limit public spending, government consumption shrank for the second consecutive year (-1.6%). Household consumption was also down (-2.9%), for the first time since the beginning of the crisis, primarily due to a real decline in the average gross earnings (the first in the last 20 years), coupled with a further drop in employment and social transfers. The deterioration of the labour market situation seen at the end of last year continues. Employment according to the statistical register dropped noticeably in Q4 2012, for the second successive quarter also in public services. In 2012, formal employment was 7.9% lower, on average, than in 2008. In Q4 2012, the registered unemployment rate was highest since 1999. January also recorded further growth in the number of registered unemployed, largely on account of people who had lost work because of the termination of fixed-term contracts. In the last quarter of 2012, the average earnings per employee fell again, marked by the lowest year-end payments in the last eight years. In 2012 as a whole, private sector earnings rose by 0.5% due to the final adjustment of the minimum wage, while earnings in the public sector were down 0.9% owing to a 3% decline of wages in the general government. In February, consumer prices were up 0.8% at the monthly level, and 2.7% year-on-year. Energy price rises, which reflected higher electricity prices as a result of the increased contribution for production from renewable energy sources, added 0.6 p.p. to monthly growth. Higher prices of clothing and footwear had a somewhat greater effect on monthly growth than in previous years. The situation in the financial system remains tight. January saw a further decline in loans to non-banking sectors, more than half of which was due to corporate and NFI deleveraging; at the same time, household deleveraging was up significantly. The volume of bad claims in the Slovenian banking system declined in December, but their share increased (to 14%) due to a lower volume of the highest-quality claims. Austerity measures adopted in the middle of last year (ZUJF) lowered all categories of public finance expenditure except interest payments, and the decline continued into January. In the last 12 months, the total central government revenue was positively impacted by higher non-tax revenues and the absorption of EU funds, while the total tax revenues dropped due to the lower revenue from corporate income tax. Expenditure declined primarily under the impact of the ZUJF, which affected all categories of expenditure except interest payments. These were up EUR 72 m on the same period 12 months before. The largest declines were recorded for expenditure on transfers to individuals and households, and expenditure on goods and services. ■o £ Q) E o £ 0 u 01 £ 01 3 U International environment EconomicactivityinSlovenia'smaintradingpartnersdropped considerably in the last quarter of 2012. Towards the end of 2012 economic activity in the euro area continued to decline, seasonally adjusted, as manufacturing production decreased markedly relative to the third quarter, turnover in retail trade declined and construction output fell to a new low. According to Eurostat's flash estimate, in the last quarter GDP was down 0.6% for the third quarter in a row. This time GDP also dropped in Austria and Germany, primarily as a result of a decline in investment in machinery and equipment and exports. The drop in activity in the last quarter of 2012 was also expected by international institutions, but it was much larger than the autumn forecasts (for example, EC, Consensus). In the first two months of this year, confidence indicators (ESI, PMI, Ifo) already improved slightly. Figure 1: Economic growth in Slovenia's main trading partners 1Q1 12 «02 12 BOB 12 »04 12 -Q4 12 forecast -0.8 -1.0 EMU Germany France Italy Austria Source: Eurostat; forecast EC (November 2012). The EC's new forecasts are also lower, reflecting a huge gap between the optimism in the financial sector and the actual recovery of the real sector. According to the EC's winter forecast, real GDP in the euro area is set to drop by 0.3% in 2013 (in the EU, it will rise by 0.1%). The EC finds that the tensions on international financial markets are easing. Its forecasts are nevertheless lower than in the autumn, as the low level of economic activity in the last quarter of 2012 represents a low starting point for the current year. A gradual return to growth is predicted only for the end of this year, and it will be mainly based on external demand. Private consumption is expected to be 0.7% lower this year due to labour market tensions and lower real earnings. Gross fixed capital formation will contract substantially for the second year in a row, by 1.9%. The EC expects growth to rebound in 2014, when the strengthening of GDP will mainly rely on domestic demand. There is still a considerable risk of a deeper decline in activity this year. As in the autumn, the main risk is associated with a further tightening of the situation in the most exposed euro area countries. Another major downside risk is growing unemployment and fiscal consolidation and their impact on domestic demand. Table 1: Comparison of GDP growth forecasts by international institutions for 2013 and 2014 2013 2014 OECD Nov 12 IMF Jan 13 CONS Feb 13 EC Feb 13 OECD Nov 12 IMF Jan 13 CONS Feb 13 EC Feb 13 EMU -0.1 -0.2 -0.2 -0.3 1.2 1.0 1.0 1.4 EU N/A 0.2 0.1 0.1 N/A 1.4 1.2 1.6 DE 0.7 0.7 0.6 0.5 1.9 1.4 1.7 2.0 IT -1.6 -1.6 -1.0 -1.0 -0.1 0.5 0.6 0.8 AT 0.8 N/A 0.7 0.7 1.8 N/A 1.5 1.9 FR 0.3 0.3 0.0 0.1 1.2 0.9 0.8 1.2 UK 0.5 1.0 0.9 0.9 1.5 1.9 1.7 1.9 US 2.0 2.0 1.9 1.9 2.8 3.0 2.8 2.6 Source: OECD Economic Outlook (November 2012), IMF World Economic Outlook Update (January 2013), EC Forecast Winter 2013 (February 2013), Consesus Forecasts (Februar 2013). Note: N/A - not available. In most euro area countries, in February the requiredyields on government bonds rose somewhat but remained lower than at the end of 2012. February's increase was mainly related to a decline in some short-term indicators, coupled with the uncertain political situation in Italy. The yields of the top-rated (AAA) government bonds in the euro area also rose slightly. Figure 2: Yields on ten-year government bonds Spain Germany 16 .<^14 1^10 Source: Bloomberg. 4 2 0 In the first two months of this year, interbank interest rates in the euro area remained almost unchanged. The 3-month EURIBOR was still very low (0.22%), only 4 basis points higher than December's lows. Year-on-year, it was 83 basis points lower in February. The 3-month USD and CHF LIBOR rates remained almost unchanged in February (0.29% and 0.02%, respectively). In February, the euro continued to appreciate against all main currencies. Once again, it appreciated slightly against the US dollar (by 0.5%), averaging USD 1.336 to EUR 1 in February. The euro thus recorded the highest level since November 2010. The euro also gained value against the Japanese yen (5.1%, to JPY 124.40 to EUR 1) and the British pound sterling (3.6%, to GDP 0.863 to EUR 1), while it remained almost unchanged against the Swiss franc (CHF 1.230 to EUR 1). Oil prices surged in February. Prices of non-energy commodities also rose. Brent oil prices in dollars were up 3.4% in February, to USD 116.80 per barrel, the highest value since March 2012. Oil prices in euros also increased, climbing to EUR 86.8 per barrel, up 3.1% from January. According to the most recent IMF figures, in January dollar prices of non-energy commodities rose by 2.0% and were 4.0% higher y-o-y. This was mainly attributable to metal prices, which were up 5.0% in January. In February non-energy commodity prices continued to increase, according to preliminary data. Figure 3: Prices of Brent crude oil and the USD/EUR exchange rate -Price in EUR (left axis) -Price in USD (left axis) -Exchange rate of USD to EUR (right axis) "Source: ECB^EIA; calculations by IMMAD. Economic developments in Slovenia In the last quarter of 2012, real merchandise exports1 continued to shrink (-0.9%, seasonally adjusted), while in 2012 as a whole, they remained at roughly the same level (0.1%) as a year earlier. Exports to the EU dropped in nominal terms, after strong growth in the previous two years, exports to former Yugoslav countries remained practically unchanged, while exports to other countries2 continued to expand at a rapid pace. Since 2008, when it stood at 8.1%, the share of exports to the latter group Figure 4: Merchandise trade - real 4,800 a a Source: SORS. Figure 5: Trade in services - nominal 1,400 -Exports Imports 1.6 1,300 1.4 _ R U 1,200 !E ot ID 1.2 U 1,100 1.0 §1,000 J^ C 0.8 ^ 900 a a a Source: SORS; calculations by IMAD. 1 According to the National Accounts Statistics. Nominal data on the structure according to the external trade statistics are available for eleven months of 2012. 2 The group of other countries encompasses all countries outside the EU, except former Yugoslav countries; excluding Russia and the US, which are our traditional trading partners. 1.8 20 Box 1: GDP in Slovenia in 2012 With economic activity continuing to fall in Q4 2012 (-1.0%, seasonally adjusted), Slovenia's GDP dropped by 2.3% in the year as a whole primarily due to lower domestic consumption. GDP has been dropping relative to the previous quarter since (and including) the third quarter of 2011. Last year's decline in economic activity was marked by stagnant exports and falling domestic consumption. Following two years of recovery, exports were, amid the deterioration in the international environment, up by a mere 0.3% last year. Investment activity continued to shrink (-9.3%), particularly in the construction sector. Amid lower capacity utilisation and limited access to finance, investment in machinery and equipment also dropped after 2011 growth. As a result of measures to limit public spending (wage cuts and rationalisation of expenditure on goods and services), government consumption shrank for the second consecutive year (-1.6%). Household consumption dropped even more (-2.9%), recording the first decline since the beginning of the crisis, which was mainly due to the first real contraction of average gross earnings in the last 20 years, coupled with a further fall in employment. Social transfers were down as well, because of austerity measures and changes to eligibility criteria, while consumer confidence was sapped by general uncertainty. Last year, value added dropped in all activities, once again most notably in construction, and for the first time since data have been available, also slightly in public services. Value added in construction declined by over 10% for the fourth consecutive year. After the recovery in the preceding two years, value added in manufacturing fell somewhat (-0.9%), and a relatively significant drop was also recorded in all market services. For the first time since data have been available, value added also declined in public services (-0.3%). Figure 6: GDP in Slovenia and its main trading partners —♦—Slovenia -Germany ---------France ---Italy -Austria ---------Croatia Figure 7: GDP expenditure structure, Slovenia Private consumption Government consumption Gross fixed capital formation ixxx Chang.in inventorles&valuables Exports of goods and services Imports of goods and services -Real GDP growth (right axis) 8 6 4 2 # 1= 0 -2 -8 -10 aaaaaaaa Source: Eurostat; calculations by IM AD. a a Source: SORS. rose by 3 p.p. to 11.1%, mainly on account of higher exports to Algeria, Turkey, China and India. Broken down by products, last year exports of vehicles and metals and other manufactures classified by material dropped in particular, while a positive contribution to total exports still came primarily from chemical products, despite the moderation. In the last quarter, the decline in real goods imports3 deepened further (-2.8%, seasonally adjusted), while in 2012 as a whole, it was 4.6% smaller than in 2011. The 2012 decline was largely attributable to a nominal drop in imports of consumer goods and investment, which together constitute a solid third of merchandise imports. Imports of intermediate goods, accounting for nearly two 3 According to the National Accounts Statistics. Nominal data on the structure according to the external trade statistics are available for eleven months of 2012. thirds of total imports, also slowed substantially last year, mainly due to the moderation in manufacturing. Nominal growth in services trade4 picked up in the last quarter. As a result of growth in other business services and in the group of other services,5 nominal exports and imports of services improved in the last quarter of 2012 (2.3% and 3.5%, respectively, seasonally adjusted). Nominal growth in exports also strengthened somewhat in 2012 as a whole (5.1%), which was, in addition to exports of the above-mentioned groups also as a result of stronger growth in exports of travel. In contrast, imports 4 According to the balance of payments statistics. 5 When we adjusted 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 just over a tenth of services exports and almost a third of services imports. -4 -6 -12 Table 2: Selected monthly indicators of economic activity in Slovenia in % 2011 XII 12/ XI 12 XII 12/ XII 11 I-XII 12/ I-XII 11 Exports1 11.7 -17.0 -6.1 1.6 -goods 13.3 -21.1 -7.4 0.9 -services 4.8 2.2 -0.9 5.1 Imports1 11.3 -11.7 -13.4 -2.2 -goods 12.9 -15.5 -16.1 -2.5 -services 2.0 11.9 1.5 -0.3 Industrial production 2.2 2.52 -1.23 0.43 -manufacturing 2.1 2.42 -1.53 -0.53 Construction -value of construction put in place -25.6 7.22 -13.63 -16.83 Real turnover in retail trade 1.5 -0.12 -4.73 -2.33 Nominal turnover in market services (without trade) 2.8 0.02 -4.33 -2.63 Sources: BS, Eurostat, SORS; calculations by IMAD. Notes: 'balance of payments statistics, 2seasonally adjusted, 3working-day adjusted data. of travel dropped again last year due to lower earnings of Slovenian consumers. A deterioration relative to the previous year was also recorded for all other groups, so that last year services imports dropped in nominal terms (-0.3%). Production volume in manufacturing shrank further in the last quarter of 2012 (-1.8%, seasonally adjusted). Production in more technology intensive industries increased more modestly than in the previous quarter, although in the year as a whole, these industries surpassed the level of production recorded in 2011 (2.4% y-o-y). All low-technology production was down y-o-y (-6.4%), again most notably in the furniture industry. The y-o-y decline (-1.9%) in medium-low-technology industries Figure 8: Production volume in manufacturing industries according to technology intensity —♦— Low-tech industries -Medium-low-tech industries -----Medium-high-and high-tech industries - Total manufacturing 105 Ei JI100 90 85 75 was influenced by the manufacture of rubber and plastic products and the manufacture of other non-metal mineral products. In 2012, industrial production in Slovenia dropped less than in the EU as a whole but was further below the 2008 levels than in most other EU Member States. The gaps with the pre-crisis levels are widest in low-technology (the textile and furniture industries) and medium-low-technology manufacturing (the manufacture of rubber and plastic products and the manufacture of other non-metal mineral products). On the other hand, pre-crisis levels have already been surpassed by some high-technology industries, which recovered more rapidly in Slovenia (the chemical and pharmaceutical industry, the manufacture of ICT and electrical equipment). As a result of a decline in 2012, the production of transport vehicles (which had been the first to return to the 2008 levels, mainly on account of measures to boost new car purchases in the main trading partners taken in 2009 and 2010) was once again lower than in 2008. Figure 9: Production volume in manufacturing in Slovenia and the EU-27 o o o o Source: SORS; calculations by IMAD Source: Eurostat; calculations by IMAD. Note: *Data for 11 months. In the last quarter, construction activity declined again (-9.8%, seasonally adjusted). In 2012, construction activity thus slumped for the fourth consecutive year - in four years, the value of construction put in place dropped by 60%. Civil engineering seems to fare best, according to data on new contracts in construction. At the end of 2012, the stock of contracts in construction was up 2.8% y-o-y. Civil engineering works have the best prospects (21.0%, due to public finance investment, most likely in municipal infrastructure), while the value of the stock of contracts in the construction of non-residential and particularly residential buildings declined again (-13.8% and -60.0%, respectively). Figure 10: Value of construction put in place -Total -----Residential buildings -Non-residential buildings ---------Civil-engineering works 140 120 ^100 80 ^ 60 40 20 a a a a Source: SORS; calculations by IMAD. Activity in trade declined again in the last quarter of 2012 in most sectors (seasonally adjusted). After some fluctuation in previous quarters, nominal turnover in wholesale trade dropped relatively significantly in Q4 2012 (-2.7%), which was a result of lower activity in manufacturing and other trade sectors, according to our estimate. As a result of the increases seen at the beginning of the year, turnover was up somewhat y-o-y in 2012 as a whole. Following the decline in previous quarters, real turnover in the sale and repair of motor vehicles grew slightly, but was nevertheless much lower than a year before. The same goes for turnover in retail trade, which continued to drop in the last quarter of 2012, reaching the lowest value since 2008 at the end of the year. Figure 11: Turnover in trade sectors 105 100 95 90 ^ 85 z^ 80 .■X 75 ■ Retail trade, real Automotive fuels, real Sale, repair of motor vehicles, real -Wholesale trade, nom. I I I I I I I I I !!!!!!!!! -r-r \ I I I I J'' I I i.......t......ri.......t............ In retail trade, the unfavourable movements in the sale of food and non-food products continued. Turnover in the sale of automotive fuels also declined. Real turnover in the sale of automotive fuels, which had been increasing rapidly in 2011, dropped in 2012 amid significant fluctuations. In the last quarter turnover shrank substantially, being also down y-o-y for the first time in two and a half years. The quantities of automotive fuels sold were also lower than a year earlier, which was, in addition to lower household consumption and weaker activity in transportation also due to higher prices of some automotive fuels compared with the neighbouring countries. In 2012 as a whole, turnover was otherwise 7.1% higher than in 2011, which was attributable to higher sales of automotive fuels in the first half of the year and, by our estimate, a more vigorous trade in other goods and services6 that are also sold by companies registered in this activity. The negative trends in the sale of non-food and food products continued amid a further deterioration of labour market conditions and uncertainty about the future. The y-o-y decline in turnover, which continued for the fourth successive year, deepened in 2012. Lower turnover in the sale of food products (particularly in hypermarkets, markets, discount stores, etc.) was a result of lower real household income and continued consumer caution and changes in buying behaviour.7 A decline in purchases of durable and semi-durable goods was also reflected in lower turnover in stores selling furniture, household equipment and construction material, where at the end of 2012 turnover was down 40% relative to that in 2008. Turnover was also lower than in 2011 in all other stores selling nonfood products, particularly those that sell computer and telecommunication equipment, books, sports equipment and toys. In 2012, nominal turnover in market services (excluding trade)" was declining, seasonally adjusted; in the last quarter, it was lowest in the last two years and a half. Turnover shrank in all main market services, except transportation and storage, where it remained unchanged. Transportation and storage is the only main service activity where turnover still exceeds the pre-crisis level of 2008. The physical indicators9 of transport activities show that turnover declined; it was up especially in warehousing and support activities for transportation. Turnover in accommodation and food service activities, which had not changed markedly since 2011, dropped substantially in the last quarter of 2012. In the year as a whole, it was down y-o-y, by our estimate, due to modest household consumption of non-tourist services, coupled with lower average consumption of tourists, although last year their number was somewhat higher than in 201110. a a a Source: SORS; calculations by IMAD. 6 Such as merchandise, electricity, natural gas, etc. 7 Shifting to discount stores, switching from name brands to lower-priced store brands, purchasing products in sales promotions and shopping at different stores seeking the lowest price. 8 Activities from H to N (SCA 2008) subject to the Council Regulation (EC) No. 1165/98 concerning short-term statistics. 9 For example, in Q3 2012, road and rail freight transport was 5.8% and 0.3%, respectively, lower than, on average, in 2008 (seasonally adjusted). 10 In 2012, 2.3% more tourists, in total, visited Slovenia than a year before (5.7% more foreign tourists and 5.3% fewer domestic tourists). 0 Within information-communication services, turnover in computer programming services is further below the 2008 level than turnover in telecommunications, where the lowering of prices and the slowdown of economic activity affect the business operations of main operators, in particular.11 Professional-technical services recorded the largest decline in turnover of all main services, primarily due to a 25% drop of turnover in engineering services, which are related to investment activities.12 Among administrative and support service activities, the most Figure 12: Nominal turnover in market services (without trade) - Total - Transportation and storage (H) Communication activ. (J) Professional, technical activ. (M) -----Accommodation and food service activities (I) 105 95 90 85 80 75 O O O O Source: SORS; calculations by IMAD. Figure 13: Business trends 40 30 20 10 0 -10 - Economic sentiment ■ Retail trade - Construction 11 According to data from the Annual Report, in 2012, the operating revenues of Telekom Slovenije thus dropped around 6% relative to the previous year. 12 In 2012, the value of construction output dropped by 16.8% in real terms relative to 2011. important are temporary employment agency activities.13 With demand for these services increasing during the crisis, they have managed to keep turnover at the 2008 level regardless of the crisis. Most confidence indicators have improved since the end of last year. In February, the value of the sentiment indicator remained unchanged (seasonally adjusted) and lower than in the previous February. The confidence indicator improved only in manufacturing, while it deteriorated visibly in retail trade. Compared with the year before, it increased only in construction. Labour market At the end of 2012 and the beginning of 2013, the labour market situation deteriorated significantly. In the last quarter of 2012, employment according to the statistical register14 dropped noticeably (1.0%, seasonally adjusted) and was down 2.5% y-o-y. Formal employment declined relatively the most in the construction sector, but it was also down in manufacturing and market services and, for the second quarter in a row, in public services. In 2012 as a whole, formal employment was down 7.9% on 2008. The registered unemployment rate also rose in the last quarter, to 12.3%, seasonally adjusted, the highest figure since 1999. The unemployment rate according to the Labour Force Survey stood at 9.5% (seasonally adjusted) and was the highest since it began to be measured in Slovenia in 1993. The rapid increase in registered unemployment continued in January (1.8%, seasonally adjusted; 7.2% y-o-y). A total of 124,258 persons were registered as unemployed at the end Figure 14: Employment by activity V Q4 2011 01 2012 IQ2 2012 103 2012 1042012 .5= Manufacturing Construction Market Public services services Source: SORS; calculations by IMAD. 13 According to SORS data, they generated more than 52% of value added in administrative and support service activities (N). 14 Employed and self-employed persons, excluding self-employed farmers. 0 -3 -5 of January. This pronounced increase is a consequence of a large number of newly registered unemployed (15,786) -particularly those who became unemployed due to the termination of fixed-term employment contracts (42.6%, y-o-y) - which exceeded the usual seasonal increase. The total outflow from the unemployment register was up somewhat in January (9,589 persons), as more people found jobs (23.9%, y-o-y), many of them through public works. The number of the latter was up, seasonally adjusted (24.3% of all jobs). Figure 15: Employed and registered unemployed persons Table 4: Labour market indicators - Employed according to the statistical register (left axis) - Registered unemployed (right axis) Source: SORS, ESS; calculations by IMAD. At the end 2012, wage movements were marked by extra payments, but they were the lowest in the last eight years so that the average gross earnings per employee dropped further in the last quarter of the year (0.3%, seasonally adjusted). The decline was due to the lowest growth of November's gross earnings per employee in the last nine years (original data). Earnings maintained a similar Table 3: Employment by activity in % 2011 XII 12/ XI 12 XII 12/XII 11 I-XII 12/ I-XII 11 Labour force -0.1 -0.6 -2.0 -1.5 Persons in formal employment -1.3 -0.9' -3.0 -1.7 Employed in enterprises and organisations and by those self-employed -2.4 -1.6 -3.2 -1.6 Registered unemployed 10.1 2.5^ 4.7 -0.5 Average nominal gross wage 2.0 0.6^ -0.7 0.1 - private sector 2.6 2.4^ -0.3 0.5 - public sector 1.0 4.3^ -1.6 -0.9 -of which general government 0.0 0.5^ -2.9 -2.2 2011 XII 11 XI 12 XII 12 Rate of registered unemployment, in %, seasonally adjusted 11.8 11.9 12.1 12.7 Average nominal gross wage (in EUR) 1,524.65 1,546.09 1,611.93 1,534.54 Private sector (in EUR) 1,388.65 1,403.46 1,513.79 1,398.56 Public sector (in EUR) 1,778.45 1,811.90 1,791.83 1,782.87 -of which general government (in EUR) 1,801.27 1,800.96 1,743.23 1,748.82 Sources: ESS. SORS; calculations by IMAD. Note: 1seasonally adjusted. level as in the previous quarter only in the general government15 (seasonally adjusted), while dropping in the private sector and particularly in the public sector as a whole due to lower 13'h month payments and Christmas bonuses (-0.5% and 0.9%, respectively). The decline in the public sector resulted from considerably lower earnings in public corporations (-3.5%). A total of EUR 85.3 m was disbursed in extra payments in the last two months of 2012; EUR 96.7 m a year earlier; and EUR 156.4 m in 2007, when these payments were highest. December's extra payments totalled EUR 22 m, somewhat more than in December 2011; their average amount was around EUR 100 lower than in November, and they were received by much fewer employees (7.0%; in November, 16.5%). Number in '000 Change in Number 2011 XII 11 XI 12 XII 12 2011/ 2010 XII 12/ XI 12 XII 12/ XII 11 I-XII 12/ I-XII11 Manufacturing 184.8 185.1 181.2 178.4 -3,725 -2,783 -6,763 -1,919 Construction 67.8 62.1 58.1 53.5 -10,709 -4,593 -8,563 -8,047 Market services 342.2 340.6 336.7 333.4 -3,400 -3,227 -7,122 -3,805 -of which: Wholesale and retail trade, repair of motor vehicles and motorcycles 109.7 109.2 107.2 106.4 -2,078 -856 -2,795 -1,848 Public services 170.2 171.4 171.5 170.2 1,406 -1,220 -1,197 1,438 Public administration and defence, compulsory social security 51.4 51.2 50.2 49.6 -661 -549 -1,557 -650 Education 64.7 65.5 65.6 65.3 1,145 -285 -194 778 Human health and social work activities 54.1 54.8 55.7 55.3 922 -386 554 1,311 Other 59.0 58.1 57.6 57.4 5,355 -231 -718 -1,632 Source: SORS; calculations by IMAD. 15 As of June 2012, we only comment on data on earnings in the private and public sector (within the latter, particularly in the general government), and only exceptionally on earnings in activities of the private sector and in public service activities; for more see SEM 06/12, Selected Topics - Monitoring the movements of wages and wage earners in the public and private sector. Figure 16: Average gross wage per employee 14 Gross wage Private sector Public sector of which general government a a Source: SORS. In 2012, gross earnings per employee remained unchanged in nominal terms, while in real terms they dropped for the first time in twenty years (-2.4%).^^ Last year, the adjustment of private sector wage growth to economic activity was more pronounced, so that private sector earnings grew only by 0.5% despite the final increase and adjustment of the minimum wage (2011: 2.6%; 2010: 5.6%).17 Their y-o-y growth was gradually slowing, arising only from the increase in the basic wage,18 while the contribution of overtime and extraordinary payments was negative (-0.1 p.p. in total), which can be attributed to low economic activity. Gross earnings in the public sector were down 0.9% y-o-y in 2012, mainly due to June's 3% decline of earnings in the general government.19 Because of fiscal consolidation, gross earnings in the general government declined by 2.2% after two years of stagnation. Besides lower earnings in the general government, which constitutes the largest part of the public sector, last year also recorded a somewhat slower wage growth in public corporations. The significantly lower year-end payments relative to the previous year were reflected in somewhat slower wage growth in public corporations, which nevertheless remained above average20 (2.0%). Prices February's consumer price movements were marked by higher prices of energy, clothing and footwear. Energy price rises contributed 0.6 p.p. to the 0.8% monthly growth and were largely a consequence of higher electricity prices due to the increase of the contribution for production from renewable energy resources. Clothing and footwear price rises made a somewhat larger contribution to price growth than in previous years, increasing inflation by 0.3 p.p. Y-o-y inflation totalled 2.7%; in the euro area, 1.8%, according to Eurostat's flash estimate. In January, price movements were marked by seasonal factors, while the y-o-y growth was still influenced by higher food and energy prices. January's deflation (-0.8%) was thus, as in previous years, affected by seasonal factors in particular - lower prices of clothing and footwear reduced monthly growth by 1.1 p.p., while higher prices of fruits and vegetables raised it by 0.3 p.p. The monthly growth was also influenced by higher prices of gas (2.9%) and higher public utility prices, which mainly reflect the change in their regulation (see Box 2). In the last 12 months, price movements were influenced by higher Table 5: Wages by activity Gross wage per employee, in EUR Change, in % 2011 XII 2012 2011/ 2010 XII 12/ XI 12 XII 12/ XII 11 I-XII 12/ I-XII 11 Private sector activities (A-N; R-S) 1,451.57 1,478.03 2.6 -6.7 -0.1 0.8 Industry (B-E) 1,408.91 1,455.48 3.6 -9.6 1.0 2.5 - of which manufacturing 1,362.79 1,394.89 3.9 -10.2 1.4 2.5 Construction 1,235.95 1,189.55 2.0 -3.6 -4.6 -2.5 Traditional services (G-I) 1,349.67 1,359.38 2.7 -6.9 -0.9 0.3 Other market services (J-N;R-S) 1,718.65 1,749.93 0.7 -3.4 -0.1 -0.3 Public service activities (O-Q) 1,750.03 1,703.43 0.0 0.6 -2.7 -2.2 - Public administration and defence, compulsory social security 1,784.27 1,750.90 0.3 0.2 -1.6 -1.8 - Education 1,733.58 1,641.59 0.2 -0.3 -5.3 -3.3 - Human health and social work activities 1,735.19 1,734.37 -0.7 2.2 -0.4 -1.3 Source: SORS; calculations by IMAD. 16 Since data have been available. 17 In private non-financial corporations, they slowed considerably (0.6%; 2011: 2.7%) while in financial corporations, gross earnings were even somewhat lower than a year before (-0.1%; 2011: 1.2%). Gross earnings were down in most activities (besides construction, particularly in service activities). Their growth slowed least in industry. 18 In private sector activities (A-N; R-S), as a result of the final increase in the minimum wage, adjustments for inflation and changes in employment structure. 19 With the enforcement of the ZUJF, wages of all public servants were cut by 8%, but at the same time public servants received the remaining two quarters of funds intended to eliminate wage disparities. 20 In non-financial public corporations 1.9%; in financial corporations 1.5%. Figure 17: Headline and core inflation in Slovenia and in the euro area 8 -Slovenia HICP -----Slovenia HICP - core inflation -Euro area HICP -----Euro area HICP -core inflation 85 ^^ J^ J^ Source: Eurostat Figure 18: Structure of y-o-y inflation Source: SORS; calculations by IMAD. prices of food (0.8 p.p.), largely non-processed food, which was up 9.1% relative to the same period last year. Higher energy prices contributed around 0.5 p.p. to y-o-y growth. The continuation of sluggish demand continues to show in a very moderate movement of core inflation. Growth in domestic producer prices of manufactured goods on the domestic and foreign markets remains moderate. Domestic producer prices on the domestic market were up slightly y-o-y (1.1%). Prices on foreign markets declined, as in the previous month (-0.3%). The price movements on the domestic and foreign markets remain characterised primarily by higher prices in the manufacture of food and food products, and lower prices of metals and metal products. Box 2: Public utility pricing and control in light of the new decree At the end of 2012, the government passed a new Decree on the pricing of mandatory public services in the field of environmental protection.1 The decree stipulates that as of the beginning of this year, prices of public utility services should be determined by the free market. After a longer period of price control, the government passed the responsibility for approving price changes back to the local level, while retaining control over possible excessive growth. Given that public utility prices had been kept unchanged since the end of 2010, the decree had to be subsequently supplemented with a temporary mechanism limiting huge price rises announced by the local governments. The temporary mechanism requires that a municipality wishing to increase public utility prices by more than 30% has to seek approval of the competent ministry. However, this mechanism is no systemic solution to the issue. Neither does it address the question of justifiability or prevent/curb excessive price rises of public utility prices in the long term. The absence of systemic regulation in this area could affect macroeconomic stability, considering that with the latest lifting of price controls without a proper systemic framework in place (in 2009), prices shot up by an average of 16% and increased 2010 inflation by 0.4 p.p. January already saw the first increases in public utility prices this year (2.1% y-o-y) and we can expect more in the coming months. Figure 19: Movement of public utility prices 140 135 130 125 120 -is 110 j= 105 100 95 90 ---------Municipal services ----Refuse collection -CPI Water supply - Sewage collection COCOO^O^OO^^rNrN C^^ c^^ Source: SORS; calculations by IMAD. 1 Official Gazette of the RS, No 87/2012; Official Gazette of the RS, No. 109/2012. Table 6: Breakdown of the HICP into sub-groups - January 2013 Slovenia Euro area Cum. % Weight % Contribution in p.p. Cum. % Weight % Contribution in p.p. Total HICP -0.6 100.0 -0.6 -1.0 100.0 -1.0 Goods -1.0 65.7 -0.7 -1.4 57.7 -0.8 Processed food, alcohol and tobacco 0.3 16.1 0.0 0.3 12.0 0.0 Non-processed food 4.9 7.4 0.4 0.8 7.3 0.1 Non-energy industrial goods -4.1 27.9 -1.1 -3.8 27.4 -1.0 Durables -0.5 9.7 0.0 -0.3 8.8 0.0 Non-durables -0.4 8.8 0.0 0.2 8.0 0.0 Semi-durables -11.3 9.4 -1.1 -9.8 10.5 -1.0 Energy 0.6 14.4 0.1 1.3 11.0 0.1 Electricity for households -0.3 2.7 0.0 3.5 2.6 0.1 Natural gas 2.7 1.1 0.0 1.0 1.8 0.0 Liquid fuels for heating 0.4 1.5 0.0 0.1 0.9 0.0 Solid fuels 0.8 0.9 0.0 0.2 0.1 0.0 District heating 0.2 0.9 0.0 0.3 0.6 0.0 Fuels and lubricants 0.6 7.4 0.0 0.6 5.0 0.0 Services 0.3 34.3 0.1 -0.5 42.3 -0.2 Services - dwellings 1.3 3.0 0.0 0.4 10.3 0.0 Services - transport -0.1 5.8 0.0 -0.5 7.2 0.0 Services - communications 0.2 3.5 0.0 -0.5 3.1 0.0 Services - recreation, repairs, personal care 0.2 13.9 0.0 -1.4 14.7 -0.2 Services - other services 0.3 8.1 0.0 -0.1 7.1 0.0 HICP excluding energy and non-processed food -1.3 78.2 -1.0 -1.5 81.7 -1.2 Source: Eurostat; calculations by IMAD. Note: ECB classification Figure 20: Movement of domestic producer prices of manufactured goods on the domestic and foreign markets -PPI (domestic) -----Mfr. of basic metals, fabric. metal prod.; exc. mach.,equip. (domestic) ----Mfr. of food products; beverages; tobacco products (domestic) -PPI (foreign) 20 16 12 8 4 -8 -12 -16 C^^ C^^ C Source: SORS. The y-o-y gain in the price competitiveness of the economy continued last year, but it was among the smallest in the euro area. In 2012 as a whole, the real effective exchange rate21 was down 1.1% in real terms due to the depreciation of the euro.22 The smaller improvement in Slovenia's price competitiveness than in other countries was largely attributable to the structure of Slovenia's external trade. As Slovenia conducts an above-average proportion of Figure 21: Real effective exchange rates of euro area countries deflated by the HICP 12 10 8 6 4 2 ^^ 0 -2 -4 -6 -8 -10 -12 i^a Source: ECB; calculations by IMAD. 21 As measured by the HICP. 22 Particularly against the USD, JPY, GBP,CNY and KRW trade with other euro area countries, the depreciation of the euro has a relatively smaller effect on its price competitiveness. The growth of relative prices was among the lowest in the euro area. Relative to the pre-crisis year 2007, Slovenia was also among the euro area countries that had the smallest gains in price competitiveness last year. Balance of payments In the last quarter of 2012, the current account of the balance of payments was in surplus again. The y-o-y improvement in the balance of current transactions was mainly due to the balance of trade, which turned from deficit to surplus, and a larger surplus in trade in services. The surplus in the balance of current transfers was somewhat smaller, while the deficit in factor incomes increased. After being nearly balanced in 2009-2011, the current account recorded a surplus equivalent to 2.5% of GDP in 2012. Broken down by sectors, the deficit of the current account of the general government declined again, while the surplus of the current account of the private sector increased. External trade has recorded a surplus since the beginning of the economic crisis. In the last quarter of 2012, the merchandise trade balance was in surplus again (in contrast to a deficit in the same period of the previous year). The improvement was influenced by volume factors in particular, with real imports shrinking much more than exports due to lower domestic consumption. The terms of trade, which have been worsening constantly for three years, deteriorated by 0.7% y-o-y in the last quarter of 2012. Export prices were up 0.5% y-o-y and import prices by 1.3%, mainly due to higher prices of manufactured goods and agricultural products and commodities. In Figure 22: Breakdown of changes in the nominal balance of merchandise trade Terms-of-trade effect Volume-of-trade effect ^™other -Change in nominal balance 400 !? 200 2012, the merchandise trade deficit totalled EUR 295.1 m (in 2011, EUR 1,043.2 m). The Q4 2012 widening of the surplus in services trade was almost entirely attributable to a larger surplus in trade in travel. Amid weak growth in revenue generated by inbound tourism, domestic spending abroad continued to shrink. In 2012 as a whole, the surplus in the services trade balance totalled EUR 1,698.1 m, EUR 255.3 m more than in 2011. The deficit in the balance of factor incomes was up y-o-y in Q4. The y-o-y widening of the deficit in the balance of factor incomes was mainly due to a higher net outflow of income from equity capital of direct investment. The total net payments of interest abroad were down y-o-y again, mainly as a result of domestic commercial bank and corporate deleveraging. In 2012, the total net payments of interest reached EUR 425.5 m (compared with EUR 437.3 m in the same period last year). Similar to the 2010-2011 period, last year Slovenia recorded the largest net payments from the EU budget in December, which contributed to a larger surplus in current transfers in Q4. The net absorption of EU funds in 2012 as a whole was also higher than in the preceding year. Slovenia received EUR 841.6 m from and paid EUR 390.3 into the EU budget, so that the net budgetary surplus amounted to EUR 451.3 m (in 2011, EUR 407.1 m). The surplus in the balance of current transfers was nevertheless smaller (EUR 25.9 m) than a year earlier (EUR 152.6 m), which was a result of larger transfers of the private sector abroad. Figure 23: Net interest payments by sector ■ BS I General government I Private sector -Total -200 a a a a Source: BS; calculations by IMAD. External financial transactions23 recorded a net outflow (EUR 204.1 m) in Q4, mainly due to a decline in the liabilities of the BS to the Eurosystem. A net outflow was also recorded in 2012 as a whole, in the amount of EUR 786.5 m (2011: EUR 421.8 m), and it was primarily a result of the o o o o Source: BS; calculations by IMAD. 3 Excluding international monetary reserves and statistical errors. 0 Table 7: Balance of payments I-XII 12, v mio EUR Inflows Outflows Balance1 Balance, I-XII 11 Current account 28,704.8 27,830.6 874.3 1.8 - Trade balance (FOB) 21,445.8 21,740.9 -295.1 -1,043.2 - Services 5,085.1 3,387.0 1,698.1 1,442.8 - Income 807.8 1,362.5 -554.6 -550.4 Current transfers 1,366.1 1,340.2 25.9 152.6 Capital and financial account 1,513.9 -2,316.4 -802.5 -451.8 - Capital account 293.0 -340.2 -47.2 -102.0 - Capital transfers 290.7 -338.8 -48.1 -97.9 - Non-produced, non-financial assets 2.3 -1.4 0.9 -4.1 - Financial account 1,220.9 -1,976.2 -755.3 -349.8 - Direct investment 111.9 85.2 197.1 638.0 - Portfolio investment -187.8 134.7 -53.2 1,837.6 - Financial derivates -91.5 57.3 -34.2 -135.8 - Other investment 1,357.1 -2,253.3 -896.2 -2,761.6 - Assets 30.8 -1,523.5 -1,492.7 -1,460.5 - Liabilities 1,326.3 -729.8 596.5 -1,301.1 - Reserve assets 31.2 0.0 31.2 72.0 Net errors and omissions 0.0 -71.8 -71.8 450.1 Source: BS. 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. repayment of private sector liabilities. Given the more difficult access to foreign sources of finance, funds for the repayment of external liabilities were acquired from the Eurosystem and by government borrowing. After several years of high net inflows, portfolio investment recorded a net outflow of EUR 53.2 m in 2012. Most transactions in securities were recorded by domestic commercial banks and the general government, which repaid a portion of their liabilities to foreign portfolio investors. By issuing treasury bonds on the domestic financial market, the government sector also changed the borrowing structure last year. At the beginning of the year, it repaid the 3-year RS 64 bond in the amount of EUR 1 bn, while in Q4, it borrowed EUR 1.7 bn on the American market. Other investment registered a net outflow o EUR 896.2 m in 2012. Looking at claims, domestic household deposits abroad rose most notably, by EUR 1,497.7 m, the highest amount since 2003 when international financial flows were fully liberalised. Slovenia's loans over the EFSF (to Greece, Portugal and Ireland) were also up. Short-term commercial loans, which are related to the dynamics of merchandise exports, were weak. Looking at liabilities, the BS borrowing from the Eurosystem in the form of long-term financing operations increased significantly. Commercial banks used some of the funds to repay a portion of external debt and to offset the withdrawal of non-residents' deposits from Slovenian banks. Direct investment recorded a net inflow of EUR 197.1 m in 2012. Slovenia's inflows from outward FDI were due to a decline in net claims on affiliated companies abroad and profit repatriation rather than a decline in equity. In direct investment in Slovenia, most of transactions were equity transactions. Figure 24: Financial transactions of the balance of payments by instrument Direct investment Portfolio investment Financial derivatives Other investment -Net financial flow 3,000 a a a a Source: BS; calculations by IMAD. Slovenia's international investment position24 has been negative since 2003 and in 2008 the external deficit exceeded the indicative threshold of the EU indicator of external imbalance (35% of GDP). Financial markets In January, the volume of loans to non-banking sectors declined again, by more than EUR 150 m. Approximately half of the decline was due to corporate and NFI deleveraging. At the same time, household deleveraging also increased notably. The volume of government loans remained nearly unchanged. Banks continued to repay matured liabilities to foreign banks; the volume of government deposits was shrinking, while household deposits again recorded slightly stronger growth. The share of bad claims continued to increase. Household deleveraging seen in 2012 strengthened further in January. The volume of household loans was down EUR 75.3 m, recording the highest decline thus far. Deleveraging was relatively balanced, unlike in previous months. Housing loans declined by EUR 30 m, consumer loans by EUR 25 m and the rest by EUR 20 m, approximately. 24 Including net external debt and net equity liabilities. In January, enterprises and NFIs continued to repay domestic bank loans, but they also recorded net repayments of foreign loans.25 Loans extended by domestic banks dropped by nearly EUR 80 m. Nearly three quarters of this amount was due to corporate loans. The decline in corporate loans was a consequence of the worsening situation in Slovenian banks, over-indebtedness of the Slovenian economy and unfavourable economic conditions. After the strong net borrowing abroad in October and November, enterprises and NFIs were repaying foreign loans at the end of the year. December's net repayments amounted to EUR 114.3 m, being highest since March Figure 25: Increases in household, corporate, NFI and government loans Households Enterprises and NFI^ Government-Total Source: BS; calculations by IMAD. Figure 26: Net corporate and NFI borrowing abroad and gaps between domestic and foreign interest rates ^^m Short-term loans (left axis) ^^m Long-term loans (left axis) -Diff. between domestic and foreign interest reates (right axis) 300 ..................... 350 300 E 0 -200 ■■■- 250 200 150 100 50 -400 o o ^ Source: BS; calculations by IMAD. 2010. Enterprises and NFIs recorded net repayments of long-term (EUR 51.5 m) and short-term loans. As a result of the relatively high net repayments in December, enterprises and NFIs net repaid EUR 28.4 m in foreign loans in 2012, in contrast to the net borrowing in the amount of EUR 153.8 m in 201 1.26 Net repayments were entirely the result of short-term deleveraging, while net long-term borrowing doubled relative to the previous year, totalling around EUR 50 m. Liquidity pressures on Slovenian enterprises and NFIs related to the repayment of matured bank liabilities thus increased in 2012. Net repayments of domestic and foreign loans amounted to EUR 1.6 bn, roughly twice as much as in 2011. In 2012, the gaps between domestic and foreign interest rates of corporate and NFI loans started to widen again, reaching 261 basis points by December. In December, banks recorded inflows of foreign sources of finance for the first time in 2012, but the net repayments at the yearly level have nevertheless been highest thus far. December's positive net flow was largely attributable to net inflows of deposits (EUR 77.1 m) and, to a lesser extent, a modest inflow from bonds, while banks' net repayments of foreign loans totalled EUR 73.2 m. Despite December's inflows, banks repaid as much as EUR 3.3 bn in foreign liabilities in 2012, nearly 30% more than in 2011, while the total payments in the period from September 2008 until the end of 2012 increased to almost EUR 9.1 bn. Figure 27: Net repayments of foreign liabilities by domestic banks ■ Bonds ■ Short-term loans -Total I Deposits I Long-term loans 1,500 500 : -500 -1,500 -2,500 -3,500 2008 2009 2010 2011 Source: BS; calculations by IMAD. 2012 In January, the inflows of household deposits in banks were again slightly higher for the second consecutive month, while government deposits continued to decline. The volume of household deposits grew by around EUR 110 m in January. The maturity structure of the increase was also quite favourable. Only overnight deposits were 25 Data on foreign borrowing pertain to December. 26 In 2005-2008, enterprises and NFIs borrowed EUR 556.9 m per year, on average. 0 Table8: Financial market indicators Domestic bank loans to nonbanking sector and household savings Nominal amounts, EUR bn Nominal loan growth, % 31. XII 12 31. I 13 31. I 13/ 31. XII 12 31.I 13/ 31.I 12 31. I 12/ 31.I 11 Loans total 31,464.6 31,313.3 -0.5 -4.5 -2.3 Enterprises and NFI 20,456.5 20,378.5 -0.4 -8.0 -4.4 Government 1,741.4 1,743.4 0.1 43.0 4.9 Households 9,266.7 9,191.4 -0.8 -2.4 2.1 Consumer credits 2,481.8 2,457.6 -1.0 -8.9 -4.3 Lending for house purchase 5,258.9 5,229.6 -0.6 -0.6 7.4 Other lending 1,526.1 1,504.2 -1.4 -2.9 -2.6 Bank deposits total 15,051.3 15,160.3 0.7 -0.2 1.6 Overnight deposits 6,479.4 6,455.9 -0.4 -2.2 5.2 Short-term deposits 4,010.4 4,075.9 1.6 0.5 -8.4 Long-term deposits 4,555.2 4,622.1 1.5 2.1 6.9 Deposits redeemable at notice 6.2 6.4 3.1 -14.5 -24.5 Mutual funds 1,830.0 1,845.3 0.8 -1.5 -8.3 Government bank deposits, total 2,562.7 2,500.3 -2.4 -10.8 -24.0 Overnight deposits 196.6 256.7 30.5 77.5 60.9 Short-term deposits 828.5 682.5 -17.6 6.3 -55.7 Long-term deposits 1,537.0 1,560.5 1.5 -22.6 -6.2 Deposits redeemable at notice 0.5 0.6 11.5 -65.0 -49.9 Sources: Monthly Bulletin of the BS, SMA (Securities Market Agency); calculations by IMAD. down, while short-term and long-term deposits grew by around EUR 65 m each, which were some of the larger increases in the last twelve months. In January, the volume of government deposits shrank by around EUR 60 m. The government was withdrawing only short-term deposits, while increasing overnight deposits and, to a lesser extent, long-term deposits. Figure 28: Shares of bad and non-performing claims and creation of impairments and provisions in the Slovenian banking system Provisions and impairments (left axis) -Share of non-performing claims (right axis) — Share of bad claims (right axis) 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 -30 17 16 15 14 13 12 11 10 9 8 JS 7 6 5 4 3 2 1 0 Despite the decline in the volume of bad claims in the Slovenian banking system, their share increased, so that the situation remains tight. In December, the volume of bad claims was down nearly EUR 140 m, the most since the tightening of the financial crisis,27 but remained significant. The volume of the highest-quality claims was down even more, so that the share of bad claims nevertheless rose by 0.1 p.p. at the monthly level, to 14%. The volume of bad claims was up EUR 1.2 bn in 2012, nearly a quarter less than in 2011. The smaller increase was primarily due to the significantly slower worsening of the quality of claims on foreigners, while the increase in bad claims on Slovenian businesses was only around 4% lower. In 2013, banks thus continue to create additional impairments and provisions in a net amount. In January, they were up EUR 30.3 m. Public finance28 In the past twelve-month period ending January 2013, the deficit of the central government continued to decline.29 Compared to the deficit over the same period one year before, it was down EUR 518 m. The reduction is explained primarily by expenditure cuts (EUR 419 m), as total revenue increased (by EUR 99 m). In January 2013, o ^ ^ Source: BS; calculations by IMAD. 27 Since the outbreak of the crisis, the volume of bad claims also dropped in January 2010 and January 2011. 28 Accumulated revenue and expenditure in the last 12 months, i.e. from February 2011 until January 2013. Growth relative to the previous period or year-on-year means: February 2012-January 2013/February 2011-January 2012). 29 According to the consolidated balance based on the cash flow principle. revenue was slightly higher than in the same month of the previous year (by EUR 6.8 m or 1.1%), while expenditure was EUR 25.6 m or 2.9% lower. The total accumulated revenue over the past twelve months including January was positively influenced by the increase in non-tax revenue in December 2012 and the withdrawal of EU funds in the last two months. Non-tax revenue over the past twelve months was up EUR 122 bn compared to the previous period, while the inflow of EU funds rose by EUR 77 m. Notwithstanding the unusually strong increase in personal income tax revenue in November 2012,30 the accumulated tax revenue over the past twelve months was down EUR 93 m compared with the same period one year earlier. The decline was mainly due to lower revenue from corporate income tax (by EUR 117 m). Revenue from domestic taxes on goods and services remained practically constant during the past twelve months (up EUR 4 m). In January, Slovenia received EUR 47.8 m from and paid EUR 51.3 m to the EU budget and thus recorded a net budgetary deficit of EUR 3.4 m. The bulk of revenue came from structural funds (EUR 42.3 m), of which 68.6% from the European Regional Development Fund and 31.4% from the European Social Fund. Slovenia also absorbed EUR 2.1 m from the Cohesion Fund, but there were no receipts under the Common Agricultural and Fisheries Policies. The plan for the absorption under the Cohesion Policy for 2013 envisages EUR 1,115.1 m in revenue from Structural Funds and the Cohesion Fund, 84.7% more than foreseen in the revised budget for 2012 (EUR 603 m; the absorption in 2012 was EUR 542 m). The main reason for this relatively ambitious plan is compliance with the N+3/2 rule (see the selected topic). Payments from the state budget into the EU budget (EUR 51.3 m) were above average32 (in 2012 and 2011, EUR 35 m). The largest part of Slovenia's expenditure was payments based on gross national income (EUR 39.2 m). Austerity measures adopted mid-2012 (ZUJF31) lowered expenditure in all categories of public finance expenditure except interest payments, and the decline continued into January. Among other measures, the ZUJF envisaged a cut in public sector wages, freeze on social transfers and limitations on certain social rights. The reduction of expenditure in the last twelve months ranked according to magnitude in descending order corresponds to: transfers to individuals and households (EUR 100 m); expenditure on goods and services (EUR 92 m); expenditure on capital investment (EUR 65 m); salaries and wages, contributions and other personnel expenditures (EUR 55 m); and subsidies (EUR 45 m). Capital transfers, representing about 67% of total investment, remain practically constant (down EUR 7 m). Interest payments increased by EUR 72 m compared with the same period one year earlier. Figure 29: State budget revenue and expenditure -Revenue, total -Expenditure, total 10.0 Source: MF; calculations by IMAD. 30 This might be attributed to problems in the new information system of the Tax Administration concerning the booking of revenue from personal income tax and social security contributions. 31 See also SEM, May 2012. Figure 30: Planned and absorbed EU funds ■ Funds planned in the revised state budget for 2013 ■ Funds planned in the state budget for 2012 ■ Total funds received in 2013 (January) ■ Total funds received in 2012 (January-December) Other Structural Funds Common Agricultural Policy 200 300 400 500 600 700 In EUR m Source: MF; calculations by IMAD. 32 The reason for the high expenditure level is the final adoption of two amendments to the EU budget for 2012 (DAB 5 and DAB 6) about financial assistance to Italy due to the earthquake and an increase in payment appropriations across headings 1a, 1b, 2, 3a and 4 of the multi-annual financial framework. 0 M u a o ■Ö 01 u 31 0! Drawing on Cohesion Policy funds in the programming period 2007-2012 In the programming period 2007-2013, Slovenia received a grant of EUR 4.1 bn for the implementation of the Cohesion Policy, EUR 1.768.2 m of which was allocated for the Operational Programme for Strengthening Regional Development Potentials (OP RR), EUR 1,577.1 m for the Operational Programme of Environmental and Transport Infrastructure Development (OP ROPI) and EUR 755.7 m for the Operational Programme for Human Resource Development (OP RČV). EU funds are distributed according to the funding allocations for any given year and drawn in compliance with the N+3/2 rule.33 Slovenia is thus, as other EU Member States, eligible to draw on Cohesion Policy funds until the end of 2015, although the current financial perspective formally ends in 2013. The extent to which Slovenia will be able to spend the allocated funds is largely dependent on the economic crisis and its effect on the ability of beneficiaries to provide own resources. Moreover, absorption capacity also depends on the roles of the government and its institutions in creating a friendlier environment for the implementation of the Cohesion Policy (improving regulations for the preparation of project documentation and simplifying lengthy bureaucratic procedures within ministries). The current programming period is characterised by a relatively high level of allocated funds and relatively low reimbursements to the state budget. From the beginning of 2007 until the end of 2012 (as at 4 January 2013), EUR 3.4 bn was allocated for individual operations (83.4% of the available funds) and the total value of signed contracts was EUR 2.9 bn (71.5% of the available funds). Payments to the beneficiaries amounted to EUR 2,047.8 m (50.6% of the whole financial allocation for 2007-2013), while reimbursements to Slovenia's budget stood at EUR 1,793.4 m (43.7% of the allocation for 20072013): EUR 1,074.6 m for OP RR (60.8% of the allocation for 2007-2013), EUR 373 m for OP ROPI (23.7% of the allocation for 2007-2013) and EUR 345.8 m for OP RČV projects (45.8% of the allocation for 2007-2013). The largest delays34 in reimbursements were recorded for OP RR projects, despite the highest absorption with regard to the allocation for 2007-2013; the smallest for OP ROPI projects, although these had the lowest absorption with regard to the allocations for both the 2007-2013 and 2007-2011 periods. The slow implementation of projects (especially in transport and environmental infrastructure) is attributable to numerous appeals in procurement procedures, bankruptcies in the construction sector, liquidity problems of municipalities, etc. Oftentimes it is also due to the complicated bureaucratic procedures within ministries (in particular, Ministry of Infrastructure and Spatial Planning and Ministry for Agriculture). As a result of the poor absorption of cohesion funds (OP ROPI), Slovenia faces a risk of losing EUR 300-400 m of EU funds by the end of the programming period 2007-2013.35 For this reason, extra appropriations were made, meaning that all Operational Programmes were allocated additional funds (OP ROPI - 16.56%, OP RR - 5% and OP RČV - 5% of the already earmarked amounts). At the same time, within the OP ROPI area, EUR 27 m of EU funds were transferred from the first development priority, Railway Infrastructure,36 to the sixth development priority, Sustainable Use of Energy. The additional appropriations should close the gaps between the assessed project values and lower values of contracts, as well as ensure a sufficient level of publicly justified expenses by the end of the programming period to maximise absorption capacity and spend all available Cohesion Policy funds. By additional appropriations and faster confirmation of the already prepared and feasible projects, Slovenia could successfully replace some of the highly risky projects that have already been assigned EU funds.37 Using this approach, Slovenia will be able to maximise the absorption of cohesion funds, but in doing so, it will also be re-allocating EU funds from the strategically vital projects to other, less important ones. In 2007-2012, the dynamics of the absorption of cohesion funds relative to the reimbursement to Slovenia's budget were Figure 31: Dynamics of reimbursements of cohesion funds to Slovenia's budget 2010 2011 2012 Source: MGRT; calculations by IMAD. 33 Funds allocated in year N should be absorbed by the end of the second/ third year. 34 Delays in the reimbursement from the EU budget of payments paid to the beneficiaries from Slovenia's state budget. 35 To comply with the N+3/2 rule, Slovenia has to certify EUR 46.8 m for the OP RR, EUR 144.8 m for the OP REV and EUR 325.8 m for the OP ROPI (EUR 295.8 m from the Cohesion Fund and EUR 30 m from the European Fund for Regional Development). 36 The execution of railway infrastructure projects is marked by spatial problems and lengthy procedures in acquiring environmental documentation. The construction of the second track of the Divaea-Koper railway has been, therefore, postponed from the current to the next financial perspective. In the meantime, the appropriate environmental documentation will be acquired. 37 The Commission developed a methodology for assessing the risks associated with the implementation of individual projects, based on which it compiled a table of risk assessments for each project, divided into three categories (low risk 0%-25%, medium risk 26%-50% and high risk 56%-100%). Table 9: Drawing on EU funds by operational programme in the period 2007-2012, in EUR m (as at 4 January 2013) OP RR OP RČV OP ROPI OP-total Eligible funds 2007-2013 1,768.2 755.7 1,577.1 4,101.0 Eligible funds 2007-2011 1,257.7 530.8 886.5 2,675.0 Allocated funds 1,534.2 696.1 1,188.9 3,419.2 Signed contracts 1,529.3 677.6 723.5 2,930.4 Payments to beneficiaries 1,212.1 410.5 425.1 2,047.7 Reimbursements to the state budget 1,074.6 345.8 373.0 1,793.4 Delays 137.5 64.7 52.1 254.3 Absorption relative to financial allocation 2007-2013 60.8 45.8 23.7 43.7 Absorption relative to financial allocation 2007-2011 85.4 65.1 42.1 67.0 Source: Ministry of Economic Development and Technology. Table 10: Drawing on cohesion funds by year, in EUR m OP Financial allocation 2007 -2013 As at 31.12. 2012 As at 31.12. 2011 As at 31.12. 2010 As at 31.12. 2009 Increase in the last period, % OP RR 1,768.2 1,074.6 790.9 430.8 168.1 35.9 OP RČV 755.7 345.8 245.6 116.6 22.7 40.8 OP ROPI 1,577.1 373 275.9 216.1 168.1 35.2 Total 4,101.0 1,793.4 1,312.4 763.5 358.9 111.9 Source: Ministry of Economic Development and Technology; calculations by IMAD. fairly uneven. In 2007 and 2008, Slovenia mainly drew on funds under the previous financial perspective. Receipts under the current financial perspective were recorded only in 2009, when reimbursements to Slovenia's budget totalled EUR 358.9 m. The growth rate of receipts from the EU budget was highest in 2010 when the total absorption rate for all programmes was double that in 2009 (112.7%). Within that, the funds for the OP RČV increased most notably (413.7%), while the funds for the OP ROPI grew the least (28.6%). In the following years, the absorption rate for cohesion funds declined, so that in 2011, Slovenia absorbed 71.9% more funds than in 2010, and in 2012, 36.7% more than in 2011. Looking at funding by regions, in the current financial perspective, the most cohesion funds were allocated to Slovenia as a single region38 (EUR 796.1 m). This region also recorded the highest payments from the total amount of Figure 32: Dynamics of reimbursements of cohesion funds to Slovenia's budget 2007-2011 and 2007-2013 (as at 1 December 2012) 80 70 2007-2011 12007-2013 ■i.....-------------r- • 40 30 Source: EC; calculations by IMAD. Table 11: Drawing on cohesion funds by statistical region in EUR m between 1 January 2007 and 31 December 2012 Regions Planned funds Actual payments for OP RR, in EUR Reimbursements to the state budget Actual payments relative to the total amount of funds, in % Actual payments relative to planned funds, in % Slovenia 796.10 311.50 295.30 26.5 39.1 Osrednjeslovenska 204.70 155.70 88.80 13.2 76.1 Podravska 319.80 141.90 137.00 12.1 44.4 Savinjska 197.80 131.90 121.50 11.2 66.7 Gorenjska 179.30 97.90 95.30 8.3 54.6 Jugovzhodna Slovenija 221.50 69.10 67.90 5.9 31.2 Pomurska 245.50 63.00 62.00 5.4 25.7 Obalno-kraška 130.80 43.00 43.80 3.7 32.9 Goriška 74.80 42.30 44.80 3.6 56.6 Spodnjeposavska 54.90 38.00 39.50 3.2 69.2 Koroška 79.30 36.70 38.00 3.1 46.3 Notranjsko-kraška 32.90 25.50 26.20 2.2 77.5 Zasavska 28.50 18.90 16.60 1.6 66.3 TOTAL 2,565.90 1,175.40 1,076.70 100.0 45.8 Source: Ministry of Economic Development and Technology. 38 The territorial unit of funds under the category Slovenia, stated in the data of the operation, is the entire Slovenia instead of the municipality or a statistical region, given that the operation is conducted in the area as a whole. 60 50 20 10 0 allocated funds (26.5%). The highest absorption relative to the level planned was posted by the Notranjsko-Kraška statistical region (77.7%), but these funds represent only 2.2% of the total available amount. The Osrednjeslovenska statistical region also had a very high absorption rate with regard to the level planned (76.1%), while the lowest absorption was recorded by the Pomurska statistical region (25.7%). According to the EC's data, Slovenia is in the upper half of EU Member States in terms of the absorption capacity for Cohesion Policy funds. In the period between 1 January 2008 and 1 December 2012, Slovenia ranked 9'h relative to the funding allocation for 2007-2011 (in 2011, 7'h) and 10'h relative to the allocation for 2007-2013 (in 2011, 9'h). Among new EU Member States, it came fifth and fourth, respectively, with regard to the allocations for 2007-2011 and 2007-2013. X "ö C a a (O "iS u (O MAIN INDICATORS 2007 2008 2009 2010 2011 2012 2013 2014 Autumn forecast 2012 GDP (real growth rates, in %) 7.0 3.4 -7.8 1.2 0.6 -2.3 -1.4 0.9 GDP in EUR million (current prices and current exchange rate) 34,594 37,244 35,556 35,607 36,172 35,466 35,495 36,129 GDP per capita, in EUR (current prices and current exchange rate) 17,135 18,420 17,415 17,379 17,620 17,343 17,327 17,610 GDP per capita (PPS)1 22,100 22,700 20,600 20,800 21,300 GDP per capita (PPS EU27=100)1 88 91 87 85 84 Gross national income (current prices and current fixed exchange rate) 33,859 36,262 34,868 35,029 35,670 35,022 34,626 35,235 Gross national disposable income (current prices and current fixed exchange rate) 33,618 35,923 34,693 35,085 35,776 34,980 34,946 35,271 Rate of registered unemployment 7.7 6.7 9.1 10.7 11.8 12.0 13.1 13.1 Standardised rate of unemployment (ILO) 4.9 4.4 5.9 7.3 8.2 8.9 9.1 9.1 Labour productivity (GDP per employee) 3.5 0.8 -6.1 3.5 2.2 -1.1 0.9 1.4 Inflation,2 year average 3.6 5.7 0.9 1.8 1.8 2.6 2.2 1.8 Inflation,2 end of the year 5.6 2.1 1.8 1.9 2.0 2.7 1.9 1.8 INTERNATIONAL TRADE - BALANCE OF PAYMENTS STATISTICS Exports of goods and services3 (real growth rates, in %) 13.7 4.0 -16.7 10.1 7.0 0.3 1.9 4.7 Exports of goods 13.9 1.8 -17.4 11.9 8.5 -0.1 1.8 5.0 Exports of services 13.2 14.3 -13.7 3.7 1.4 2.1 2.3 3.2 Imports of goods and services3 (real growth rates, in %) 16.7 3.7 -19.5 7.9 5.2 -4.3 -1.0 3.8 Imports of goods 16.2 3.0 -20.7 8.9 6.1 -4.6 -1.0 3.9 Imports of services 19.7 8.2 -12.0 2.7 -0.3 -2.4 -0.8 3.2 Current account balance, in EUR million -1,646 -2,295 -246 -209 2 874 1,363 1,142 As a per cent share relative to GDP -4.8 -6.2 -0.7 -0.6 0.0 2.5 3.8 3.2 Gross external debt, in EUR million 34,783 39,234 40,294 40,723 40,241 40,632 As a per cent share relative to GDP 100.5 105.3 113.3 114.4 111.2 114.6 Ratio of USD to EUR 1.371 1.471 1.393 1.327 1.392 1.286 1.240 1.240 DOMESTIC DEMAND - NATIONAL ACCOUNTS STATISTICS Private consumption (real growth rates, in %) 6.3 2.3 0.1 1.3 0.9 -2.9 -3.6 0.2 As a % of GDP4 52.5 52.6 55.7 57.2 57.8 58.3 57.7 57.7 Government consumption (real growth rates, in %) 0.6 5.9 2.5 1.5 -1.2 -1.6 -6.9 -1.9 As a % of GDP4 17.3 18.1 20.1 20.7 20.8 20.6 19.1 18.6 Gross fixed capital formation (real growth rates, in %) 13.3 7.1 -23.2 -13.8 -8.1 -9.3 1.3 1.5 As a % of GDP4 27.8 28.6 23.1 20.1 18.5 17.4 18.0 18.3 Source of data: SORS, BS, Eurostat, calculations and forecasts by IMAD (Autumn Forecast, September 2012). Note: 1Measured in purchasing power standard. ^Consumer price index. 3Balance of payments statistics (exports F.O.B., imports F.O.B.); real growth rates are adjusted for inter currency changes and changes in prices on foreign markets. 4Shares GDP are calculated for GDP in current prices at fixed exchange rate (EUR=239.64). PRODUCTION 2010 2011 2012 2010 2011 2012 2010 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12 1 2 3 4 INDUSTRIAL PRODUCTION, y-o-y growth rates, % Industry B+C+D 6.2 2.2 0.0 7.4 8.7 3.6 0.1 -3.0 0.9 -0.7 0.6 -0.7 13.8 13.8 6.5 6.5 3.3 B Mining and quarrying 11.0 -8.1 -6.6 15.7 -5.6 -9.3 -9.3 -7.9 -10.0 -1.7 -3.0 -11.7 39.7 -6.4 -1.2 -8.4 -4.7 C Manufacturing 6.6 2.1 -1.0 7.1 9.1 3.7 -0.3 -3.6 0.3 -2.0 -1.0 -1.2 12.4 14.6 6.6 6.9 3.2 D Electricity, gas & steam supply1 1.8 5.0 10.0 7.0 6.9 3.8 5.1 4.0 8.2 12.8 16.1 4.3 17.4 11.0 6.3 3.6 5.7 CONSTRUCTION,2 real indices of construction put in place, y-o-y growth rates, % Construction, total -17.0 -25.6 -16.8 -16.2 -25.3 -31.1 -25.4 -20.1 -17.7 -16.4 -12.7 -20.5 -12.2 -20.9 -23.6 -29.7 -27.0 Buildings -14.0 -39.7 -17.3 -19.2 -41.5 -46.5 -34.3 -35.9 -13.0 -6.7 -18.2 -30.0 -12.4 -25.9 -41.2 -53.1 -37.9 Civil engineering -19.0 -15.3 -16.6 -14.1 -6.3 -20.7 -20.0 -10.0 -21.2 -20.9 -10.0 -16.2 -12.1 -15.4 2.7 -5.2 -19.0 TRANSPORT, tonne-km in m, y-o-y growth rates, % Tonne-km in road transport 7.9 3.2 -6.3 -3.2 1.5 3.6 11.7 6.0 -5.3 -5.9 Tonne-km in rail transport 28.2 9.7 28.2 23.3 10.8 8.5 -1.6 -8.7 -8.0 -5.8 Distributive trades, y-o-y growth rates, % Total real turnover* 3.6 3.1 -3.6 5.8 7.5 3.6 2.9 -0.5 0.6 -4.3 -3.2 -2.7 4.1 8.7 9.8 3.9 3.4 Real turnover in retail trade -0.1 1.4 -2.3 1.8 3.4 0.4 2.2 0.2 2.5 -2.7 -1.7 -1.0 0.4 4.0 5.5 0.6 0.3 Real turnover in the sale and maintenance of motor vehicles 12.2 6.6 -6.2 15.0 15.8 9.9 4.4 -1.9 -2.8 -7.2 -5.7 -6.3 14.1 19.2 18.3 9.8 9.8 Nominal turnover in wholesale trade & commission trade 1.4 5.8 0.5 3.7 12.2 3.8 4.5 3.4 3.4 -0.6 1.3 -1.7 5.3 11.2 15.4 10.4 4.2 TOURISM, y-o-y growth rates, %, new methodology from 2009 onwards Total, overnight stays -1.5 5.3 -4.0 0.4 3.1 6.6 6.6 3.1 0.7 1.2 1.2 1.9 -1.2 4.9 -1.9 6.7 13.6 Domestic tourists, overnight stays -4.2 0.5 -10.9 -0.3 0.1 0.4 0.8 0.4 -0.5 -4.6 -7.5 -5.2 3.2 0.1 -2.0 2.7 9.3 Foreign tourists, overnight stays 0.7 9.1 0.9 1.0 6.5 11.3 10.2 5.5 2.0 5.1 6.3 8.1 -5.4 8.6 -1.7 11.0 17.2 Nominal turnover market services (without distributive trades) 2.8 3.7 -1.2 5.4 5.7 4.7 4.8 -0.3 -0.6 0.5 -0.4 -4.1 4.9 7.2 4.9 5.2 7.0 AGRICULTURE, y-o-y growth rates, % Purchase of agricultural products, SIT bn, since 2007 in EUR m 454.5 478.9 481.7 137.5 100.4 113.3 125.7 139.5 108.4 110.4 128.4 134.5 47.7 32.9 30.5 36.9 36.9 BUSSINES TENDENCY (indicator values**) Sentiment indicator -9 -7 -17 -8 -7 -4 -6 -10 -12 -16 -19 -2^ -9 -7 -7 -6 -4 Confidence indicator - in manufacturing -1 0 -11 1 3 3 -1 -7 -6 -11 -14 -13 -1 3 3 3 5 - in construction -57 -46 -41 -53 -53 -46 -44 -43 -41 -44 -39 -39 -56 -56 -51 -51 -49 - in services -3 1 -12 -2 0 3 3 -4 -8 -8 -14 -18 -1 0 -2 3 4 - in retail trade 7 8 2 10 6 12 1 12 6 4 1 -3 11 7 12 -1 10 Consumer confidence indicator -25 -25 -35 -26 -27 -25 -25 -24 -26 -36 -39 -37 -27 -26 -28 -26 -26 Source of data: SORS. 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. 2011 2012 2013 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 4.3 3.1 -1.5 -1.5 2.8 -1.9 0.6 -8.0 1.3 4.4 -2.3 3.3 -3.2 -2.0 4.3 4.3 -5.5 7.1 -3.8 -5.8 - -22.1 0.2 -8.5 -17.3 -1.7 -6.0 -2.5 -16.3 5.8 -11.5 -21.2 -7.5 10.2 -6.5 -5.2 2.0 -5.5 1.8 -17.6 -20.3 4.9 3.1 -1.9 -2.4 3.0 -2.6 -0.5 -8.2 1.0 3.2 -2.7 3.3 -4.5 -4.2 2.6 2.8 -6.9 6.6 -4.2 -6.3 3.2 2.4 4.4 11.8 -0.4 4.7 13.1 -4.0 3.4 16.2 5.2 5.7 9.5 24.0 22.6 16.3 9.8 11.8 2.3 -0.2 - -29.3 -36.2 -27.0 -31.2 -17.5 -25.4 -9.6 -24.6 -24.4 -26.6 -5.0 -14.5 -23.2 -10.9 -19.4 -14.4 -5.2 -21.4 -25.0 -13.6 - -48.0 -52.8 -36.0 -36.7 -30.0 -33.3 -28.6 -44.5 -31.1 -31.0 27.6 -7.2 -15.6 4.4 -23.9 -11.9 -18.6 -34.6 -19.4 -35.4 -16.6 -25.9 -21.2 -28.0 -9.7 -21.0 0.7 -7.0 -18.1 -22.8 -22.0 -18.6 -26.5 -17.0 -17.1 -15.7 1.2 -15.0 -27.2 -2.1 - - - - - - - - - - - 6.0 1.4 0.0 6.3 2.4 0.7 -0.5 -1.8 2.6 1.0 -1.8 -4.0 -5.2 -3.7 -0.6 -3.7 -10.2 -3.4 -5.4 -8.0 - 1.8 -0.9 -1.1 5.6 2.1 0.5 1.3 -1.1 4.0 3.5 -0.1 -3.5 -3.1 -1.5 -0.6 -0.8 -6.5 -4.1 -5.9 -7.5 14.0 5.9 2.2 8.0 3.0 1.3 -3.6 -3.4 -0.1 -3.5 -4.8 -5.1 -8.8 -7.7 -0.6 -10.6 -17.5 -1.8 -4.4 -9.3 6.2 1.1 -0.3 8.5 5.6 5.7 5.6 -0.9 8.6 3.9 -0.9 0.1 0.4 -2.3 7.2 2.8 -5.3 4.8 -2.0 -8.0 -4.2 10.6 4.1 7.0 9.8 1.9 7.0 1.2 0.2 -0.3 2.4 -0.9 7.9 -1.9 1.3 2.5 -1.4 -3.5 9.3 2.2 - -3.0 -3.4 -3.7 2.1 7.3 -2.9 8.6 -3.3 -0.3 -3.3 2.8 -14.3 -1.6 0.9 -9.9 -4.1 -9.8 -6.6 -8.1 -0.7 -5.0 21.6 9.7 10.0 11.2 5.5 5.2 5.8 0.6 4.5 1.9 9.4 14.1 -3.7 8.4 6.3 3.1 -1.3 28.2 4.9 0.5 6.8 2.1 4.7 7.6 -1.5 0.2 0.5 0.3 -3.6 1.4 -1.0 2.5 0.0 1.1 0.6 -3.0 -4.3 -0.4 -7.4 39.6 36.8 42.2 39.8 43.7 48.9 44.0 46.7 34.3 35.1 39.0 37.0 38.3 35.1 47.2 37.9 43.3 47.1 41.0 46.3 - - -3 -5 -5 -7 -6 -10 -10 -11 -12 -12 -12 -16 -14 -17 -16 -19 -21 -23 -22 -17 -16 -16 3 1 0 -1 -1 -8 -7 -5 -3 -6 -8 -10 -11 -13 -12 -14 -15 -16 -14 -9 -12 -8 -44 -45 -46 -43 -42 -42 -45 -41 -43 -40 -40 -45 -43 -43 -41 -36 -40 -42 -41 -35 -30 -31 2 3 3 5 2 0 -2 -9 -11 -9 -5 -8 -7 -10 -11 -14 -17 -20 -19 -15 -13 -13 15 12 1 -11 12 13 14 10 5 8 6 8 2 3 1 0 3 -3 -4 -3 -1 -7 -25 -23 -24 -27 -23 -26 -26 -20 -27 -26 -26 -38 -33 -37 -36 -35 -45 -39 -38 -35 -30 -32 LABOUR MARKET 2010 2011 2012 2010 2011 2012 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 2 3 FORMAL LABOUR FORCE (A=B+E) 935.5 934.7 920.2 0.0 936.8 937.5 931.1 933.3 926.6 923.7 915.2 915.2 936.0 937.3 937.1 PERSONS IN FORMAL EMPLOYMENT (B=C+D)' 835.0 824.0 810.0 829.3 821.9 828.4 823.9 821.7 812.7 816.5 809.1 801.7 820.9 821.7 823.1 In agriculture, forestry, fishing 33.4 38.8 37.0 33.3 38.0 40.1 38.8 38.0 35.2 37.8 37.4 37.4 38.0 38.0 38.1 In industry, construction 287.3 272.9 263.1 281.9 273.7 274.2 272.7 271.0 265.4 266.3 263.1 257.5 274.4 273.6 273.1 Of which: in manufacturing 188.6 184.8 182.9 186.8 184.1 184.7 184.4 186.2 184.6 184.1 182.5 180.4 183.9 184.3 184.3 in construction 78.5 67.8 59.8 75.0 69.7 69.3 67.9 64.4 60.5 61.6 60.1 56.9 70.7 69.5 68.9 In services 514.3 512.3 510.0 514.1 510.2 514.1 512.4 512.7 512.1 512.4 508.6 506.8 508.5 510.1 511.9 Of which: in public administration 52.0 51.4 50.7 51.8 51.2 51.5 51.4 51.3 50.9 51.2 50.8 50.0 51.2 51.2 51.2 in education, health-services, social work 116.7 118.8 120.9 118.0 117.8 118.8 118.5 120.1 120.7 121.6 120.3 121.0 117.3 117.8 118.3 FORMALLY EMPLOYED (C)1 747.2 729.1 717.0 740.6 728.1 731.9 728.9 727.4 720.9 722.7 716.2 708.4 727.3 727.8 729.0 In enterprises and organisations 685.7 671.8 662.6 681.3 671.4 673.9 671.3 670.7 666.4 667.4 661.4 655.1 670.7 671.3 672.1 By those self-employed 61.5 57.2 54.5 59.3 56.7 58.0 57.6 56.6 54.5 55.4 54.8 53.3 56.6 56.6 56.9 SELF-EMPLOYED AND FARMERS (D) 87.8 94.9 93.0 88.7 93.8 96.5 95.0 94.4 91.8 93.8 92.9 93.3 93.5 93.8 94.1 REGISTERED UNEMPLOYMENT (E) 100.5 110.7 110.2 105.5 114.9 109.1 107.2 111.6 114.0 107.2 106.1 113.5 115.1 115.6 113.9 Female 47.9 52.1 52.2 50.2 52.9 50.9 51.1 53.3 53.2 51.0 50.9 53.8 53.2 53.2 52.4 By age: under 26 13.9 12.9 11.9 15.1 14.5 12.6 11.3 13.4 12.7 10.8 10.1 14.0 14.7 14.7 14.1 aged over 50 31.4 39.0 38.2 34.5 40.1 39.1 38.7 38.2 39.2 38.1 37.4 38.1 40.2 40.2 39.9 Unskilled 37.5 39.5 39.4 38.2 41.6 39.2 38.1 39.3 41.0 39.2 37.8 39.5 41.6 41.9 41.2 For more than 1 year 42.8 50.2 55.2 47.2 48.7 48.6 49.6 53.8 57.2 55.1 54.5 53.9 48.6 49.0 48.7 Those receiving benefits 30.0 36.3 33.9 29.7 39.7 36.4 34.9 34.4 37.8 33.2 31.5 33.0 39.2 40.2 39.8 RATE OF REGISTERED UNEMPLOYMENT, E/A, in % 10.7 11.8 12.0 11.3 12.3 12.2 11.5 12.0 12.3 11.6 11.6 12.4 12.3 12.3 12.2 Male 10.1 11.4 11.5 10.7 12.0 11.9 10.9 11.3 11.9 11.1 11.0 11.9 12.0 12.0 11.9 Female 11.6 12.4 12.6 12.1 12.6 12.5 12.3 12.7 12.7 12.3 12.3 13.0 12.7 12.7 12.5 FLOWS OF FORMAL LABOUR FORCE 13.3 2.7 5.3 12.1 3.9 -6.9 0.0 5.7 -1.9 -5.2 -0.2 12.6 5.1 0.5 -1.7 New unemployed first-job seekers 16.8 14.4 16.3 8.7 3.2 2.0 2.7 6.5 2.4 1.9 3.0 9.0 1.3 1.0 0.9 Redundancies 83.5 82.2 90.3 28.6 24.4 16.8 18.7 22.3 22.6 17.9 20.9 28.9 11.8 6.0 6.6 Registered unemployed who found employment 57.0 61.0 58.3 14.5 17.5 17.2 13.4 12.9 17.3 14.0 13.5 13.5 5.8 4.9 6.8 Other outflows from unemployment (net) 29.9 32.8 43.1 10.7 6.2 8.5 8.0 10.2 9.6 11.1 10.7 11.8 2.2 1.6 2.4 REGISTERED VACANCIES3 174.6 194.5 169.7 46.5 45.5 52.9 52.3 43.8 44.9 41.2 46.8 36.8 15.2 14.3 16.0 For a fixed term, in % 80.7 81.7 83.0 80.0 81.5 81.0 82.8 81.4 82.9 83.4 84.0 81.8 80.9 81.7 81.8 WORK PERMITS FOR FOREIGNERS 41.6 35.6 33.9 39.4 38.0 35.5 34.7 34.3 34.2 34.4 33.9 33.2 38.3 38.1 37.7 As % of labour force 4.4 3.8 3.7 4.2 4.1 3.8 3.7 3.7 3.7 3.7 3.7 3.6 4.1 4.1 4.0 NEW JOBS 104.1 118.3 110.6 27.5 27.3 27.3 26.3 37.4 30.8 27.3 26.9 15.1 10.0 7.6 9.6 Source of data: SORS, 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 figures for farmers from the Labour Force Survey. Data for previous years dating back to January 2000 have also been calculated according to the new methodology. ^Estimated by IMAD, based on data by PDII and ESS; 3According to ESS. 2011 2012 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 938.4 937.7 936.3 931.7 930.0 931.5 935.3 934.5 930.1 927.5 927.1 925.4 926.0 923.7 921.3 917.4 914.5 913.8 918.0 916.5 911.0 826.9 829.0 829.2 824.2 823.0 824.5 824.4 823.4 817.3 811.6 812.0 814.5 816.9 816.9 815.7 810.5 808.4 808.3 807.1 805.0 792.9 40.1 40.1 40.1 38.9 38.8 38.8 38.1 38.1 37.9 35.2 35.1 35.3 37.7 37.8 37.9 37.2 37.4 37.6 37.5 37.4 37.4 273.5 274.7 274.4 272.6 272.8 272.7 273.5 272.1 267.4 265.4 264.7 266.1 266.6 266.6 265.7 264.0 263.2 262.2 261.1 259.5 251.9 184.3 185.1 184.6 183.8 184.0 185.2 186.8 186.6 185.1 184.6 184.6 184.6 184.4 184.2 183.8 182.9 182.5 182.1 181.8 181.2 178.4 69.1 69.4 69.4 68.4 68.4 67.0 66.2 65.0 62.1 60.7 59.9 61.0 61.7 61.8 61.4 60.5 60.2 59.6 59.0 58.1 53.5 513.3 514.3 514.7 512.7 511.4 513.1 512.8 513.2 512.0 510.9 512.2 513.1 512.6 512.5 512.1 509.3 507.9 508.5 508.5 508.1 503.7 51.5 51.6 51.6 51.4 51.5 51.2 51.3 51.4 51.2 50.8 50.9 50.9 51.1 51.2 51.2 50.8 50.8 50.7 50.2 50.2 49.6 118.6 118.9 119.0 118.2 118.1 119.3 119.8 120.2 120.3 119.9 120.8 121.5 121.6 121.7 121.4 120.3 119.8 120.8 121.1 121.3 120.6 730.5 732.5 732.6 729.0 728.1 729.7 730.1 729.0 723.0 719.6 720.3 722.7 723.0 723.1 722.1 717.7 715.6 715.2 713.7 711.6 699.9 672.9 674.3 674.4 671.1 670.5 672.2 672.7 671.9 667.6 665.2 666.1 667.9 667.7 667.7 666.7 662.8 660.9 660.5 659.2 657.7 648.3 57.6 58.2 58.2 57.9 57.5 57.4 57.4 57.0 55.5 54.5 54.2 54.8 55.3 55.4 55.3 55.0 54.7 54.7 54.5 53.9 51.6 96.4 96.5 96.6 95.1 95.0 94.8 94.3 94.5 94.3 91.9 91.8 91.8 93.9 93.8 93.6 92.8 92.8 93.1 93.4 93.4 93.1 111.6 108.6 107.1 107.6 107.0 107.0 110.9 111.1 112.8 116.0 115.0 110.9 106.8 106.8 105.6 106.9 106.1 105.4 110.9 111.5 118.1 51.8 50.7 50.2 50.9 51.0 51.3 53.5 53.4 53.2 54.2 53.4 52.0 51.7 50.9 50.5 51.2 50.9 50.5 53.3 53.3 54.9 13.4 12.5 11.9 11.5 11.1 11.2 13.6 13.5 13.2 13.2 12.9 12.0 11.4 10.7 10.3 10.2 10.1 10.1 14.2 14.0 13.8 39.4 39.1 38.8 38.9 38.8 38.4 38.2 37.9 38.4 39.6 39.4 38.6 38.5 38.1 37.7 37.9 37.4 37.1 37.0 37.1 40.2 40.1 39.1 38.4 38.1 37.9 38.3 38.7 39.0 40.1 41.4 41.6 40.0 40.0 39.0 38.4 38.2 37.7 37.5 38.3 38.7 41.6 48.8 48.6 48.5 48.8 49.6 50.4 51.8 52.9 56.7 58.0 57.3 56.3 55.4 55.0 54.7 54.6 54.6 54.3 54.3 53.6 53.8 37.5 36.4 35.3 35.2 35.1 34.4 33.9 33.7 35.5 38.5 38.3 36.7 34.2 33.4 31.9 32.1 31.4 31.2 31.5 31.9 35.6 11.9 11.6 11.4 11.5 11.5 11.5 11.9 11.9 12.1 12.5 12.4 12.0 11.8 11.6 11.5 11.7 11.6 11.5 12.1 12.2 13.0 11.5 11.2 11.0 11.0 10.9 10.8 11.1 11.2 11.6 12.1 12.1 11.6 11.3 11.0 10.9 11.0 11.0 10.9 11.4 11.6 12.7 12.3 12.1 12.0 12.2 12.3 12.3 12.7 12.7 12.7 13.0 12.8 12.5 12.4 12.2 12.2 12.4 12.4 12.3 12.9 12.9 13.3 -2.4 -2.9 -1.6 0.5 -0.6 0.1 3.9 0.2 1.7 3.2 -0.9 -4.2 -1.8 -2.3 -1.2 1.3 -0.8 -0.6 5.4 0.6 6.6 0.7 0.7 0.7 0.6 0.7 1.4 4.4 1.3 0.8 0.8 0.7 0.8 0.7 0.6 0.6 0.8 0.8 1.4 6.3 1.8 0.9 5.4 5.6 5.7 6.4 5.7 6.6 6.9 7.1 8.2 10.6 6.1 5.9 6.5 5.8 5.6 8.0 5.6 7.3 8.4 8.2 12.2 6.0 6.3 4.9 4.0 4.1 5.4 4.4 4.5 4.0 5.0 5.2 7.1 5.5 4.7 3.9 4.0 4.0 5.5 4.9 5.1 3.4 2.5 3.0 3.0 2.6 2.9 2.5 3.1 3.8 3.3 3.3 2.6 3.7 3.5 4.1 3.5 3.5 3.3 3.8 4.3 4.3 3.2 15.7 17.8 19.3 15.5 17.2 19.5 15.8 14.3 13.6 15.6 13.1 16.2 14.0 14.2 13.0 15.4 16.4 15.1 15.9 11.3 9.6 81.5 82.1 79.3 80.9 83.5 83.9 84.0 81.6 78.5 80.3 82.7 85.7 83.3 83.9 83.0 83.7 84.6 83.8 83.0 81.0 81.3 37.4 34.6 34.5 34.5 34.7 34.9 34.5 34.3 34.2 34.2 34.2 34.2 34.7 34.4 34.1 33.8 33.9 33.9 33.6 33.3 32.7 4.0 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.6 3.6 9.4 9.2 8.7 7.6 6.5 12.3 11.9 12.6 12.8 11.8 8.4 10.6 10.0 9.0 8.4 8.2 7.0 11.6 10.5 8.3 6.8 WAGES AND INDICATORS OF OVERALL COMPETITIVENESS 2010 2011 2012 2010 2011 2012 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2 3 4 GROSS WAGE PER EMPLOYEE, y-o-y growth rates, % Activity - Total 3.9 2.0 0.1 3.3 3.1 2.0 1.7 1.1 1.6 0.3 -0.7 -1.0 4.3 1.7 1.4 A Agriculture, forestry and fishing 5.8 3.1 -1.1 6.9 7.1 4.2 1.1 0.4 0.1 -1.0 -1.5 -2.0 8.0 5.7 2.5 B Mining and quarrying 4.0 3.8 3.7 6.0 3.6 0.3 5.8 5.9 8.4 10.6 2.2 -5.2 0.4 6.8 9.0 C Manufacturing 9.0 3.9 2.5 6.8 5.4 3.6 3.5 3.1 3.4 2.5 2.0 2.3 10.1 1.0 1.9 D Electricity, gas, steam and air conditioning supply 3.7 2.3 3.3 4.4 1.6 5.2 3.5 -0.5 5.6 3.9 4.9 -0.5 1.2 3.7 1.6 E Water supply sewerage, waste management and remediation activities 2.2 -0.1 0.1 1.3 -0.1 1.5 1.1 -2.7 2.1 -0.5 0.4 -1.4 0.1 -0.2 -1.1 F Constrution 4.4 2.0 -2.5 5.2 5.5 1.5 0.3 0.5 -0.3 -2.8 -2.8 -3.8 6.4 4.2 -0.5 G Wholesale and retail trade, repair of motor vehicles and motorcycles 3.7 2.8 0.8 3.9 3.2 2.6 2.3 3.0 2.1 1.6 0.0 -0.3 4.3 1.5 2.2 H Transportation and storage 2.0 2.7 -0.4 3.1 2.3 3.0 3.9 1.6 2.2 0.6 -1.7 -2.3 3.4 0.8 1.5 I Accommodation and food service activities 4.0 2.1 -0.8 4.5 4.7 2.4 2.0 -0.6 -0.4 -0.7 -1.0 -1.1 5.6 3.5 2.8 J Information and communication 2.6 0.9 -0.4 3.5 1.0 1.2 1.8 -0.2 0.3 1.3 -1.2 -2.0 1.4 -0.6 1.2 K Financial and insurance activities 1.0 0.6 1.1 -2.6 2.3 2.4 0.8 -2.4 4.5 -1.7 2.2 -0.3 1.6 0.3 2.6 L Real estate activities 3.0 2.9 -0.5 1.0 4.1 2.9 3.4 1.6 1.1 -1.3 -0.6 -1.3 2.9 6.5 2.2 M Professional, scientific and technical activities 1.6 -0.4 -1.1 0.7 0.4 0.2 -0.6 -1.6 -0.5 -0.8 -1.7 -1.3 0.2 0.0 0.0 N Administrative and support service activities 4.1 3.5 0.6 4.8 4.3 3.2 3.9 2.7 3.0 0.3 -0.9 0.2 4.5 3.0 2.9 O Public administration and defence, compulsory social security -0.6 0.3 -1.8 0.3 1.2 0.6 -0.1 -0.4 -0.2 -1.5 -3.2 -2.4 1.0 2.2 0.6 P Education 0.6 0.2 -3.3 0.6 0.7 -0.1 -0.3 0.4 -0.3 -2.2 -5.0 -5.6 0.8 0.8 0.3 Q Human health and social work activities -0.3 -0.7 -1.3 -0.3 -0.9 -0.8 -0.5 -0.5 -0.5 -1.0 -1.7 -2.1 -0.7 -0.5 -0.9 R Arts, entertainment and recreation 0.5 -0.7 -2.8 -1.2 -0.2 -1.2 -1.0 -0.3 -0.6 -1.5 -4.4 -4.6 -0.3 0.3 -1.6 S Other service activities 4.2 0.9 -0.9 3.3 2.7 1.5 0.6 -1.1 0.5 -0.6 -1.0 -2.4 3.8 1.7 0.0 INDICATORS OF OVERALL COMPETITIVENESS1, y-o-y growth rates, % Effective exchange rate,2 nominal -2.1 -0.1 -1.2 -2.4 -1.3 0.6 0.4 0.1 -0.5 -1.3 -1.8 -1.4 -1.3 -0.4 0.2 Real (deflator HICP) -1.8 -1.0 -1.1 -2.7 -1.8 -0.5 -1.2 -0.5 -0.9 -1.3 -1.2 -0.8 -2.0 -1.0 -1.0 Real (deflator ULC) -1.6 -2.3 -2.9 -2.9 -1.5 -2.3 -2.4 -2.8 -3.8 -3.5 USD/EUR 1.3268 1.3917 1.2856 1.3593 1.3669 1.4393 1.4126 1.3480 1.3110 1.3196 1.2515 1.2974 1.3649 1.3999 1.4442 Source of data: SORS, ECB; calculations by IMAD. Note: 1 Change of the source for effective exchange rate series as of April 2012: a new source, ECB; before that, own calculations (IMAD). 2 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. 2011 2012 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2.8 2.0 1.3 2.5 1.4 1.5 1.1 0.8 2.2 2.0 0.7 1.0 1.3 -1.3 -0.1 -0.7 -1.2 0.4 -2.4 -0.7 6.8 3.4 -1.5 3.8 1.1 0.2 4.1 -3.5 2.1 0.3 -2.1 -0.1 -0.5 -2.5 1.3 -1.9 -3.9 2.5 -5.9 -2 -5.8 -1.4 6.4 4.3 6.6 9.7 2.2 6.8 10.0 11.9 3.8 4.0 14.9 13.2 1.4 5.4 -0.2 1.5 1.7 -18 5.2 3.8 1.8 5.2 3.4 2.8 4.6 1.8 4.5 3.8 1.9 2.7 3.9 1.0 4.3 1.3 0.3 5.2 0.5 1.4 7.2 6.8 3.6 4.7 2.2 3.7 -8.1 5.6 5.5 8.0 3.6 5.2 6.5 0.3 4.0 2.6 8.3 7.8 -6.6 -0.5 3.4 2.3 -1.2 3.3 1.1 2.2 -7.5 -1.3 3.1 2.8 0.5 0.4 0.7 -2.5 4.0 -0.1 -2.6 2.2 -7.0 1.5 1.6 3.4 -0.9 0.9 0.8 -0.5 2.3 -0.5 1.1 1.4 -3.1 -1.3 -0.4 -6.6 -1.4 -1.9 -5.1 0.2 -6.8 -4.6 2.4 3.3 2.0 3.2 1.7 2.4 4.3 2.4 3.3 2.2 1.0 2.9 1.8 0.0 0.7 0.5 -1.0 0.5 -0.8 -0.6 2.0 5.4 9.6 4.0 -1.5 3.5 0.8 0.8 3.7 0.8 2.0 1.5 2.1 -1.9 -6.3 -1.3 2.7 -1.1 -3.9 -1.6 1.7 2.6 1.3 3.3 1.6 0.6 -1.9 -0.3 0.2 0.4 -1.7 -1.4 0.5 -1.2 -0.1 -1.1 -1.9 -0.9 -0.9 -1.4 1.7 0.5 -0.3 2.5 3.1 1.2 -0.4 -1.3 0.1 0.2 0.5 2.3 1.7 -0.1 0.8 -1.2 -3.1 0.1 -7.1 1.6 9.0 -4.0 -1.7 3.2 0.9 -0.6 -6.2 0.5 1.5 8.4 3.8 -0.4 -4.4 -0.2 1.8 1.8 3.0 3.5 -4.0 0.3 4.4 2.3 2.0 4.7 3.4 1.7 1.0 2.0 2.3 2.5 -1.5 -0.1 -1.3 -2.4 0.1 -1.0 -1.1 0.1 -2.3 -1.6 0.9 -0.3 -1.2 0.2 -0.9 0.5 -2.9 -2.3 0.0 -0.5 -1.1 -0.7 1.0 -2.7 -0.8 -1.9 -2.4 -0.9 -1.9 -1.0 2.8 3.8 3.5 3.1 5.2 2.4 3.2 2.5 2.1 5.1 2.0 -0.2 1.7 -0.6 -0.1 0.0 -2.5 1.4 -1.1 0.5 0.7 0.6 0.2 0.1 -0.6 -1.3 0.2 -0.1 0.6 -0.4 -0.7 -0.7 -0.3 -3.5 -3.4 -3.3 -2.9 -2.9 -2.6 -1.6 -0.2 -0.3 -0.4 -0.5 0.1 1.0 -0.4 0.5 0.1 -0.6 -0.5 -1.5 -0.4 -4.6 -4.8 -5.0 -5.2 -5.8 -5.8 -5.3 -0.8 -0.6 -0.1 -1.0 -0.5 -0.5 -0.4 -0.5 -0.5 -0.4 -0.6 -0.3 -1.0 -1.6 -2.2 -2.0 -1.0 -2.8 -3.0 -0.4 -2.1 0.1 -0.2 -1.2 -1.4 1.6 -1.6 -0.8 -1.3 -1.9 1.3 -0.9 0.0 -3.5 -4.1 -3.6 -5.4 -6.3 -3.9 -3.7 2.4 2.0 -1.0 1.6 1.1 0.0 -1.6 -1.8 2.0 -0.4 0.0 -0.6 0.1 -1.2 -0.1 -2.2 -0.7 -1.2 -4.0 -1.9 0.6 1.0 0.2 0.5 0.4 -0.1 0.2 0.1 -0.1 -0.4 -0.9 -1.2 -1.2 -1.5 -1.8 -2.1 -1.5 -1.6 -1.7 -0.9 -0.1 -0.5 -1.6 -1.3 -0.6 -0.5 -0.3 -0.7 -0.8 -0.6 -1.3 -1.1 -1.5 -1.5 -1.5 -1.5 -0.4 -1.0 -1.3 -0.2 1.4349 1.4388 1.4264 1.4343 1.3770 1.3706 1.3556 1.3179 1.2905 1.3224 1.3201 1.3162 1.2789 1.2526 1.2288 1.2400 1.2856 1.2974 1.2828 1.3119 PRICES 2010 2011 2012 2010 2011 2012 2010 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 11 12 1 2 3 CPI, y-o-y growth rates, % 1.8 1.8 2.6 1.7 1.7 1.7 1.3 2.5 2.5 2.5 2.9 2.6 1.4 1.9 1.8 1.4 1.9 Food, non-alcoholic beverages 1.0 4.4 4.1 2.0 3.9 5.0 3.7 5.1 3.9 4.2 3.9 4.4 1.9 2.2 3.7 4.1 3.9 Alcoholic beverages, tobacco 7.2 5.7 6.5 8.1 8.1 6.3 3.7 4.9 4.2 5.1 7.2 9.5 8.0 8.1 7.8 8.3 8.3 Clothing and footwear -1.9 -1.5 -0.2 -0.4 -0.7 -2.4 -4.2 0.9 -2.2 1.6 0.7 -0.8 0.0 -0.1 0.1 -0.1 -2.1 Housing, water, electricity, gas 10.2 5.6 3.8 9.0 6.8 5.4 4.8 5.4 4.9 4.2 4.4 1.8 7.1 8.3 7.4 6.6 6.5 Furnishings, household equipment 1.4 2.7 0.1 2.1 2.7 3.9 2.4 1.7 1.2 0.0 -0.1 -0.9 1.8 2.6 2.4 2.5 3.3 Medical, pharmaceutical products 2.1 1.6 0.4 4.6 2.9 2.6 0.8 0.3 -0.2 1.4 0.2 0.3 4.4 4.3 3.2 3.0 2.6 Transport -0.3 1.0 3.3 -0.5 0.8 0.5 1.1 1.7 2.6 3.2 3.9 3.5 -1.2 0.3 0.7 1.0 0.7 Communications 1.4 1.2 -2.4 2.8 2.7 1.6 2.3 -1.8 -1.2 -2.9 -3.6 -2.0 2.8 3.2 1.4 3.3 3.3 Recreation and culture 0.4 -1.5 1.4 0.1 -2.6 -1.0 -1.7 -0.8 2.6 1.2 1.2 0.4 -0.1 0.4 -0.9 -6.5 -0.4 Education 1.6 1.7 2.9 0.8 1.7 1.6 1.9 1.4 1.1 1.3 4.3 4.8 1.3 0.7 1.7 1.8 1.7 Catering services -2.5 -6.8 4.5 -11.0 -11.0 -10.9 -6.2 2.0 2.3 2.5 3.7 9.4 -11.0 -11.1 -11.1 -11.1 -10.9 Miscellaneous goods & services 1.4 2.2 2.4 0.7 1.4 2.3 2.4 2.6 2.5 1.2 3.3 2.8 0.6 0.6 0.8 1.2 2.3 HCPI 2.1 2.1 2.8 2.0 2.2 2.0 1.5 2.6 2.5 2.5 3.2 3.0 1.6 2.2 2.3 2.0 2.4 Core inflation (excluding fresh food and energy) 0.3 1.3 2.0 0.4 0.5 1.1 1.2 2.3 2.2 1.8 2.0 1.9 0.2 0.6 0.4 0.2 1.0 PRODUCER PRICE INDICES, y-o-y growth rates, % Total 2.1 4.5 0.9 3.8 5.7 4.8 4.1 3.6 1.3 0.8 0.7 0.6 3.8 4.2 5.2 5.9 6.0 Domestic market 2.0 3.8 1.0 3.2 4.5 4.1 3.7 2.9 1.1 0.9 0.9 1.2 3.2 3.5 4.0 4.8 4.8 Non-domestic market 2.2 5.3 0.7 4.4 6.9 5.5 4.6 4.4 1.6 0.7 0.4 0.1 4.5 4.9 6.4 7.1 7.2 euro area 2.2 6.1 0.1 4.8 8.2 6.5 5.1 4.6 0.8 0.2 0.1 -0.5 4.8 5.6 7.5 8.6 8.6 non-euro area 2.1 3.6 2.0 3.5 4.0 3.1 3.5 3.8 3.4 2.0 1.3 1.5 3.6 3.6 4.0 3.6 4.2 Import price indices 7.4 5.4 1.9 8.9 8.9 5.5 4.5 2.9 1.9 1.2 1.3 3.2 8.9 10.3 10.4 8.5 7.9 PRICE CONTROL,1 y-o-y growth rates, % Energy prices 16.5 10.9 12.7 15.3 15.1 9.9 8.3 10.8 12.1 12.5 14.5 11.6 12.2 15.7 15.5 15.6 14.3 Oil products 17.3 11.9 13.0 14.6 15.7 10.5 9.9 11.7 12.3 12.7 14.4 12.6 11.6 15.6 15.8 16.3 15.2 Transport & communications 1.8 1.1 1.6 1.1 1.1 1.1 1.1 1.1 0.7 0.0 0.0 5.7 1.1 1.1 1.1 1.1 1.1 Other controlled prices 1.3 0.0 -0.6 0.1 0.1 0.1 0.0 -0.2 -0.2 -0.3 0.1 -1.8 0.1 0.1 0.1 0.1 0.1 Direct control - total 14.2 2.8 9.2 12.2 7.2 1.5 0.5 2.1 7.3 9.5 11.0 8.9 9.2 11.8 11.8 5.4 4.5 Source of data: SORS; 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. Since July 2007, the data are not comparable. 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. 2011 2012 2013 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 1.7 2.2 1.3 0.9 0.9 2.1 2.7 2.7 2.0 2.3 2.9 2.3 2.6 2.4 2.3 2.4 2.9 3.3 2.7 2.3 2.7 2.4 4.2 6.3 4.6 2.9 3.8 4.4 5.6 4.8 4.9 3.9 3.9 4.0 4.7 4.3 3.7 4.1 3.7 4.0 4.3 4.2 4.7 5.2 6.3 6.4 6.2 5.4 2.8 3.0 4.8 4.9 4.9 4.1 3.9 4.7 5.1 5.2 5.1 7.4 7.1 7.0 9.6 9.5 9.4 11.2 -2.8 -1.5 -3.0 -4.2 -4.9 -3.4 2.0 2.1 -1.5 -2.2 -3.5 -1.2 0.2 3.0 1.6 0.8 1.8 -0.3 -1.5 -1.7 0.8 1.6 6.3 5.9 3.9 4.4 4.9 5.1 5.5 5.7 5.0 4.7 5.3 4.7 4.0 3.7 4.9 3.9 4.2 5.2 2.7 1.5 1.3 0.7 3.5 4.2 3.9 3.5 1.7 2.1 1.8 2.0 1.4 1.3 1.5 0.8 0.7 0.1 -0.7 -0.3 0.1 -0.2 -0.8 -1.2 -0.7 -0.5 2.5 2.6 2.8 1.0 0.8 0.5 0.5 0.2 0.0 -0.3 -0.3 0.1 1.5 1.5 1.3 0.1 0.2 0.3 0.3 0.4 0.2 -0.1 0.4 0.7 0.4 0.1 1.1 2.0 1.9 1.9 1.4 2.0 2.5 3.3 4.1 2.8 2.6 2.4 4.5 4.7 3.9 3.3 3.4 2.0 2.3 1.9 0.5 3.4 2.5 0.9 -1.8 -0.3 -3.3 -0.1 -1.2 -2.4 -2.6 -3.2 -2.8 -3.1 -4.4 -3.2 -1.6 -3.3 -1.1 -3.6 -0.5 -1.1 -1.3 -1.8 -2.0 -1.2 -0.3 -0.9 -1.2 0.8 6.8 0.4 0.9 1.2 1.6 1.3 1.2 1.2 0.1 0.9 0.2 -0.4 1.7 1.6 1.6 1.6 1.6 2.5 1.8 0.9 1.6 1.0 1.1 1.2 1.3 1.3 1.3 1.3 5.9 5.7 4.8 5.0 4.7 4.6 -11.2 -10.9 -10.5 -10.2 -9.8 2.7 2.0 2.0 2.2 2.5 2.4 2.1 2.8 2.6 2.1 1.4 0.9 8.9 9.1 9.7 9.3 9.3 2.5 2.4 2.2 2.2 2.3 2.7 2.4 2.5 2.8 2.9 2.7 1.9 1.9 1.1 0.6 2.5 3.7 3.7 3.1 2.9 2.4 2.4 2.0 2.4 1.6 1.1 1.2 2.3 2.9 2.8 2.1 2.3 2.8 2.4 2.9 2.4 2.4 2.6 3.1 3.7 3.2 2.8 3.1 2.8 1.0 1.3 1.1 1.0 0.8 1.9 2.3 2.5 2.1 2.4 2.6 1.6 1.9 1.9 1.7 1.9 2.0 2.0 1.9 1.8 2.0 1.9 5.7 4.2 4.4 4.1 4.2 4.1 3.7 3.6 3.6 2.4 0.8 0.7 0.7 1.0 0.7 0.8 0.4 0.7 0.8 0.7 0.4 0.4 5.0 3.6 3.7 3.7 3.8 3.6 3.1 2.9 2.6 1.9 0.7 0.6 0.7 1.3 0.8 0.9 0.8 0.9 1.2 1.3 1.0 1.1 6.4 4.9 5.1 4.6 4.6 4.6 4.3 4.3 4.5 3.0 0.9 0.8 0.8 0.8 0.5 0.6 0.1 0.6 0.4 0.1 -0.2 -0.3 7.9 5.8 5.8 4.8 5.2 5.2 4.4 4.7 4.7 2.8 -0.1 -0.2 0.0 0.4 0.1 0.5 -0.5 0.2 -0.1 -0.6 -0.8 -0.8 3.0 2.8 3.6 4.1 3.2 3.2 4.1 3.5 4.0 3.5 3.3 3.4 2.8 1.7 1.4 1.0 1.3 1.6 1.7 1.8 1.1 1.0 6.3 5.4 5.0 4.5 4.8 4.3 4.1 3.0 1.8 0.9 2.1 2.8 2.0 1.2 0.3 0.1 1.1 2.7 2.9 3.7 3.0 12.0 9.7 7.9 6.3 9.1 9.6 10.8 11.9 9.7 10.3 12.0 13.8 14.7 11.8 10.9 10.1 14.6 18.8 14.7 10.4 9.8 7.5 12.7 10.2 8.7 7.7 10.8 11.3 12.3 12.7 10.3 10.5 12.2 14.2 15.3 11.9 10.8 9.2 14.4 19.4 15.8 11.4 10.5 8.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 8.6 8.6 8.6 0.1 0.1 0.0 0.0 0.0 0.0 -0.2 -0.2 -0.2 -0.2 -0.2 -0.3 -0.3 -0.3 -0.3 0.1 0.1 0.1 -3.0 -1.1 -1.1 -3.9 3.0 1.5 0.1 -1.0 1.1 1.4 2.2 2.9 1.3 2.0 9.5 10.6 11.1 9.0 8.5 7.9 11.0 14.0 10.1 8.5 8.1 5.0 BALANCE OF PAYMENTS 2010 2011 2012 2010 2011 2012 2010 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12 12 3 BALANCE OF PAYMENTS, in EUR m Current account -209 2 874 -62 55 73 -91 -36 -28 260 270 373 18 37 -54 73 Goods1 -997 -1,043 -295 -447 -227 -219 -214 -383 -228 -99 12 20 -186 -47 -91 -89 Exports 18,762 21,265 21,446 4,962 5,179 5,486 5,245 5,354 5,332 5,503 5,259 5,352 1,525 1,582 1,655 1,942 Imports 19,759 22,308 21,741 5,409 5,406 5,705 5,458 5,738 5,560 5,602 5,247 5,332 1,711 1,628 1,746 2,031 Services 1,285 1,443 1,698 314 316 399 358 370 404 451 458 385 96 110 83 122 Exports 4,616 4,839 5,085 1,174 1,052 1,186 1,381 1,219 1,113 1,246 1,434 1,292 425 341 317 394 Imports 3,331 3,396 3,387 860 736 787 1,023 849 709 795 976 907 329 231 234 271 Income -599 -550 -555 -116 -85 -143 -238 -84 -175 -118 -127 -134 -37 -26 -31 -28 Receipts 574 918 808 160 204 237 220 257 180 227 210 191 72 57 58 89 Expenditure 1,173 1,469 1,362 276 289 380 459 341 355 345 337 325 109 83 89 117 Current transfers 102 153 26 188 52 36 3 61 -30 27 -72 101 144 -1 -15 68 Receipts 1,203 1,373 1,366 448 378 320 311 364 338 354 274 400 233 85 131 162 Expenditure 1,100 1,220 1,340 260 326 284 308 302 368 327 347 298 89 86 146 95 Capital and financial account 535 -452 -803 -2 48 -244 -84 -172 137 -173 -501 -266 135 -167 54 162 Capital account 53 -102 -47 -37 -7 -6 -8 -82 6 26 1 -81 -61 -9 1 1 Financial account 482 -350 -755 35 55 -239 -77 -89 131 -199 -502 -185 197 -158 52 161 Direct investment 431 638 197 358 -9 240 246 160 190 48 35 -76 46 -117 -29 136 Domestic abroad 160 -81 85 54 -15 31 55 -152 -8 82 19 -8 0 -57 22 20 Foreign in Slovenia 271 719 112 304 6 209 191 313 198 -34 16 -68 46 -60 -51 116 Portfolio investment 1,956 1,838 -53 392 2,592 -300 -440 -15 -935 213 -1,006 1,674 139 1,136 -206 1,662 Financial derivatives -117 -136 -34 -15 -80 -15 -24 -18 -20 -17 0 2 -4 -29 -31 -20 Other investment -1,806 -2,762 -896 -689 -2,457 -177 108 -236 857 -438 490 -1,805 29 -1,159 301 -1,599 Assets 783 -1,461 -1,493 594 -1,525 -159 -349 572 -1,467 -81 256 -202 1,392 -1,040 352 -836 Commercial credits -174 -47 31 232 -322 -88 44 319 -349 -35 110 305 410 -218 29 -133 Loans 203 -52 -311 20 -99 -22 48 22 4 -95 84 -303 56 -50 5 -54 Currency and deposits 672 -1,315 -1,158 346 -1,109 -48 -408 250 -1,131 25 16 -68 912 -763 325 -671 Other assets 81 -46 -55 -4 5 0 -33 -18 10 24 46 -135 14 -9 -7 21 Liabilities -2,589 -1,301 597 -1,283 -932 -18 457 -808 2,323 -357 233 -1,603 -1,363 -118 -51 -763 Commercial credits 362 94 300 72 199 -18 -85 -3 168 138 -98 91 -124 -42 60 181 Loans -986 -1,235 -706 -385 -388 -298 203 -753 -122 -223 -177 -184 -388 -109 -88 -190 Deposits -1,954 -169 1,026 -928 -787 334 340 -57 2,287 -288 530 -1,503 -820 3 -8 -781 Other liabilities -11 9 -24 -42 42 -36 0 3 -10 16 -22 -8 -30 31 -15 27 International reserves2 19 72 31 -11 9 12 33 19 39 -6 -21 19 -13 10 17 -18 Statistical error -326 450 -72 64 -104 171 175 207 -108 -88 231 -107 -153 131 0 -235 EXPORTS AND IMPORTS BY END-USE OF PRODUCTS, in EUR m Export of investment goods 1,834 1,999 n.p. 516 446 517 506 530 470 541 506 N/A 178 127 142 177 Intermediate goods 10,044 11,906 n.p. 2,662 2,904 3,097 3,001 2,904 3,042 3,082 3,006 N/A 792 904 929 1,070 Consumer goods 6,550 6,909 n.p. 1,694 1,737 1,757 1,622 1,792 1,681 1,724 1,599 N/A 523 522 553 663 Import of investment goods 2,323 2,504 n.p. 671 563 616 589 736 557 583 568 N/A 252 151 174 238 Intermediate goods 12,210 14,010 n.p. 3,339 3,500 3,588 3,452 3,471 3,629 3,572 3,403 N/A 1,039 1,051 1,130 1,319 Consumer goods 5,522 5,938 n.p. 1,493 1,390 1,526 1,501 1,522 1,427 1,400 1,350 N/A 449 424 455 511 Source of data: BS, SORS. Note: 'Exports and imports (F.O.B.) include also the adjustment for exports and imports of goods by ITRS and duty-free shops reports. 2Reserve assets of the BS. 2011 2012 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 49 -94 117 26 -127 10 70 2 -107 -57 -112 140 69 97 94 77 1 192 125 143 105 -73 -162 16 20 -137 -97 -51 -108 -224 -118 -50 -60 -4 -44 -51 26 -89 74 0 68 -48 1,747 1,882 1,857 1,782 1,534 1,929 1,830 1,901 1,622 1,638 1,716 1,979 1,794 1,848 1,861 1,820 1,599 1,840 1,948 1,902 1,502 1,820 2,043 1,842 1,762 1,671 2,025 1,882 2,010 1,846 1,756 1,766 2,038 1,798 1,892 1,912 1,793 1,688 1,766 1,949 1,834 1,549 145 122 132 81 122 155 151 125 94 147 99 158 142 183 126 116 157 185 188 112 86 400 381 406 459 459 463 416 382 421 375 322 416 392 436 418 485 479 469 466 409 418 255 258 274 378 337 308 265 257 327 228 223 258 251 253 292 368 323 285 278 297 332 -49 -55 -39 -94 -89 -56 -31 -39 -14 -61 -58 -56 -43 -38 -37 -39 -43 -45 -47 -44 -44 68 82 87 74 65 82 80 77 99 60 58 61 72 79 75 71 69 70 63 63 65 117 137 126 167 154 138 111 116 114 121 117 117 115 118 112 110 112 115 110 107 109 27 0 9 19 -23 7 0 24 37 -25 -102 97 -25 -3 56 -26 -25 -21 -16 7 111 115 105 99 117 71 123 94 115 155 69 65 204 92 110 153 108 82 85 87 105 207 88 105 91 98 95 115 93 91 118 95 167 107 117 113 97 134 106 106 103 99 96 18 60 -322 55 -48 -92 -297 -60 185 85 191 -139 -136 -191 154 -63 -210 -227 -298 -120 152 -2 0 -4 -7 -4 3 -2 9 -89 -6 9 3 26 1 0 0 2 -2 -2 5 -85 20 60 -318 62 -44 -95 -295 -68 274 91 182 -142 -162 -192 154 -63 -213 -226 -296 -126 237 89 111 39 65 69 113 -82 -50 292 -29 102 116 -93 87 53 34 -16 17 -17 67 -126 -9 14 26 -44 41 57 -77 4 -79 -31 1 23 -27 37 72 6 32 -20 -22 42 -28 98 98 13 109 27 55 -6 -53 372 3 102 93 -65 50 -19 28 -48 37 5 25 -98 -361 288 -226 72 -64 -448 225 -179 -61 211 -820 -325 107 162 -56 -619 -168 -219 1,674 45 -45 -5 -5 -5 -4 -4 -16 -2 -8 -8 -11 0 -9 -4 -2 -10 -2 -1 2 2 0 0 283 -335 -125 -59 -59 227 -421 125 61 -12 841 28 -172 -437 172 565 -26 -49 -1,981 -249 425 78 -87 -150 -498 -17 166 -361 301 632 -612 104 -958 -384 120 183 146 170 -60 -294 -422 514 -83 31 -36 -39 202 -118 -135 42 412 -87 -86 -177 23 -32 -26 16 159 -65 -29 39 296 12 -17 -18 -20 27 41 -48 23 46 21 129 -146 -153 -28 86 40 52 -8 16 -47 -273 138 -97 -89 -424 -228 244 -187 234 203 -543 44 -632 -258 165 119 60 -56 13 -130 -410 472 10 -3 -7 -14 -18 -1 9 3 -29 -3 17 -4 4 15 5 31 15 0 -151 -4 20 205 -248 25 439 -42 61 -60 -177 -572 600 737 986 212 -557 -12 418 -196 11 -1,687 173 -89 143 4 -165 -10 -263 188 -24 137 -116 -81 152 97 -17 -75 230 -8 -148 59 6 20 65 -214 -226 142 240 -41 5 -201 -429 -122 77 -212 13 103 -213 -113 -83 -61 -32 15 -189 -10 274 -26 86 202 237 -99 158 103 -319 550 833 904 115 -278 -126 527 12 -9 -1,726 359 -136 2 0 -38 7 25 -33 7 12 -15 54 -36 -28 10 9 -2 -17 1 -6 18 -17 -9 13 1 -2 -12 15 29 -15 44 -10 -68 59 48 0 -2 -4 -41 -3 23 26 11 -18 -67 34 205 -82 175 82 227 58 -78 -29 -79 -1 67 94 -248 -14 210 35 173 -23 -257 156 183 178 178 154 173 171 177 181 143 155 172 180 186 175 170 161 176 188 175 N/A 996 1,060 1,042 1,005 903 1,093 1,026 1,052 826 950 989 1,102 1,002 1,044 1,035 1,046 932 1,028 1,110 1,052 N/A 560 599 599 559 439 624 594 629 570 499 527 654 556 567 602 553 458 588 607 629 N/A 185 227 205 204 166 219 203 226 307 174 159 224 186 201 196 216 162 190 217 202 N/A 1,153 1,265 1,170 1,119 1,059 1,275 1,203 1,254 1,014 1,168 1,169 1,292 1,176 1,208 1,188 1,173 1,092 1,138 1,242 1,156 N/A 477 557 491 475 474 552 504 536 482 445 456 526 448 474 478 441 447 462 530 514 N/A MONETARY INDICATORS AND INTEREST RATES 2010 2011 2012 2010 2011 9 1 10 1 11 1 12 1|2|3|4|5|6|7 2SELECTED CLAIMS OF OTHER MFI ON DOMESTIC SECTORS, end of the month, in EUR m Claims of the BS on central government 138 102 221 140 139 139 138 132 101 99 76 76 76 76 Central government (S. 1311) 3,419 4,299 5,057 3,422 3,447 3,453 3,419 3,332 3,326 3,409 3,319 3,327 3,282 3,276 Other government (S. 1312, 1313, 1314) 526 584 610 417 434 497 526 538 536 541 532 530 533 534 Households (S. 14, 15) 9,282 9,454 9,267 9,119 9,149 9,225 9,282 9,226 9,233 9,276 9,304 9,383 9,425 9,507 Non-financial corporations (S. 11) 21,646 20,876 19,472 21,862 21,848 21,790 21,646 21,793 21,775 21,772 21,782 21,714 21,725 21,656 Non-monetary financial institutions (S. 123, 124, 125) 2,497 2,229 2,135 2,488 2,496 2,497 2,497 2,454 2,402 2,372 2,350 2,341 2,325 2,323 Monetary financial institutions (S. 121, 122) 5,811 5,445 5,194 5,399 5,079 5,688 5,811 5,674 5,740 6,504 5,179 5,275 5,259 5,224 Claims on domestic sectors, TOTAL In domestic currency 35,994 35,692 34,558 35,616 35,430 35,931 35,994 35,993 36,008 36,712 35,736 35,811 35,836 35,720 In foreign currency 1,843 1,536 1,309 1,828 1,742 1,777 1,843 1,760 1,739 1,691 1,689 1,751 1,724 1,794 Securities, total 5,345 5,659 5,864 5,263 5,282 5,444 5,345 5,265 5,266 5,470 5,043 5,008 4,990 5,007 SELECTED OBLIGATIONS OF OTHER MFI ON DOMESTIC SECTORS, end of the month, in EUR m Deposits in domestic currency, total 26,767 28,420 29,582 26,819 26,696 27,486 26,767 27,630 27,235 28,129 27,080 27,205 27,384 27,392 Overnight 8,155 8,245 8,678 8,031 7,926 8,119 8,155 8,245 8,179 8,799 8,206 8,237 8,259 8,303 With agreed maturity -short-term 8,193 7,868 7,056 8,096 8,100 8,256 8,193 8,816 8,483 8,724 8,477 8,614 8,615 8,471 With agreed maturity -long-term 10,337 12,248 13,780 10,532 10,587 11,003 10,337 10,496 10,550 10,583 10,375 10,324 10,470 10,567 Short-term deposits redeemable at notice 82 59 68 160 83 108 82 73 23 23 22 30 40 51 Deposits in foreign currency, total 463 579 552 462 456 471 463 452 453 449 444 459 464 488 Overnight 285 386 372 277 286 291 285 282 287 284 286 295 304 317 With agreed maturity -short-term 121 133 123 125 113 118 121 115 116 113 107 111 107 113 With agreed maturity -long-term 55 59 56 57 55 59 55 53 49 51 50 52 52 57 Short-term deposits redeemable at notice 2 1 1 3 2 3 2 2 1 1 1 1 1 1 INTEREST RATES OF MONETARY FINANCIAL INSTITUTIONS, % New deposits in domestic currency Households Overnight deposits 0.21 0.22 0.20 0.19 0.20 0.20 0.20 0.21 0.21 0.21 0.21 0.21 0.21 0.23 Time deposits with maturity of up to one year 1.81 2.15 2.31 1.85 1.86 1.88 1.94 2.04 1.98 2.04 2.08 2.15 2.20 2.20 New loans to households in domestic currency Housing loans, 5-10 year fixed interest rate 5.53 5.46 5.48 5.17 5.50 5.43 5.65 5.85 5.17 5.45 5.51 5.42 5.52 5.39 New loans to non-financial corporations in domestic currency Loan over EUR 1 million, 1-5 year fixed interest rate 5.76 5.69 5.32 4.98 5.72 6.00 5.44 5.83 5.45 5.40 5.25 5.82 5.97 6.17 INTEREST RATES OF THE EUROPEAN CENTRAL BANK, % Main refinancing operation^ 1.0^ 1.2^ 0.8^ 1.0^ 1.0^ 1.0^ 1.0^ 1.0^ 1.0^ 1.0^ 1.2^ 1.2^ 1.2^ 1.50 INTERBANK INTEREST RATES EURIBOR 3-month rates 0.81 1.39 0.57 0.88 1.00 1.04 1.02 1.02 1.09 1.18 1.32 1.42 1.49 1.60 6-month rates 1.08 1.64 0.83 1.14 1.22 1.27 1.25 1.25 1.35 1.48 1.62 1.71 1.75 1.82 LIBOR CHF 3-month rates 0.19 0.12 0.07 0.17 0.17 0.17 0.17 0.17 0.17 0.18 0.18 0.18 0.18 0.18 6-month rates 0.27 0.18 0.15 0.24 0.24 0.24 0.24 0.24 0.24 0.25 0.26 0.25 0.24 0.24 Source of data: BS, BBA - British Bankers' Association. 2011 2012 2013 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 76 77 76 83 102 111 119 182 169 188 204 227 227 207 226 224 221 232 3,328 3,355 3,387 3,436 4,299 4,465 4,580 4,801 4,752 4,796 4,811 4,870 4,814 4,874 5,138 5,144 5,057 5,036 536 535 541 554 584 588 589 588 591 580 584 589 590 585 583 580 610 609 9,490 9,468 9,481 9,467 9,454 9,421 9,391 9,412 9,380 9,380 9,362 9,341 9,346 9,338 9,341 9,318 9,267 9,191 21,537 21,369 21,444 21,434 20,876 20,976 20,896 20,933 20,922 20,843 20,693 20,561 20,506 20,398 20,294 20,044 19,472 19,424 2,292 2,298 2,286 2,277 2,229 2,210 2,234 2,323 2,320 2,300 2,291 2,247 2,244 2,210 2,204 2,186 2,135 2,116 5,422 5,375 5,491 5,224 5,445 5,111 4,846 5,644 5,527 5,613 5,918 5,248 5,229 5,210 4,930 5,012 5,194 5,085 35,854 35,763 35,970 35,784 35,692 35,407 35,334 36,103 35,955 35,979 36,202 35,461 35,440 35,316 35,131 34,943 34,558 34,349 1,705 1,628 1,586 1,557 1,536 1,529 1,505 1,492 1,472 1,458 1,439 1,423 1,402 1,372 1,354 1,348 1,309 1,263 5,046 5,008 5,075 5,052 5,659 5,837 5,697 6,105 6,066 6,076 6,018 5,972 5,886 5,928 6,004 5,990 5,864 5,845 27,423 27,337 27,631 27,376 28,420 28,359 27,926 30,197 30,165 30,208 30,322 29,703 29,591 29,354 29,457 30,062 29,582 29,575 8,241 8,236 8,058 8,436 8,245 8,399 8,195 8,177 8,404 8,375 9,151 8,573 8,632 8,523 8,648 8,763 8,678 8,726 8,468 8,369 8,372 7,791 7,868 7,688 7,468 7,553 7,362 7,441 7,111 7,134 7,052 6,964 6,980 7,417 7,056 6,905 10,662 10,683 11,148 11,089 12,248 12,180 12,171 14,395 14,319 14,309 13,982 13,930 13,852 13,751 13,755 13,763 13,780 13,863 52 49 53 60 59 92 92 72 80 83 78 66 55 116 74 119 68 81 476 486 494 538 579 570 564 577 568 559 583 597 591 579 571 576 552 538 305 320 329 365 386 391 384 384 385 381 397 410 412 397 388 399 372 372 108 109 109 114 133 117 120 132 124 116 125 125 119 124 126 119 123 109 62 57 55 58 59 61 59 60 58 61 60 61 59 57 56 57 56 56 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0.23 0.24 0.24 0.26 0.24 0.24 0.24 0.23 0.22 0.22 0.22 0.19 0.19 0.18 0.17 0.17 0.17 0.14 2.18 2.17 2.24 2.27 2.28 2.39 2.35 2.38 2.38 2.37 2.29 2.27 2.23 2.23 2.28 2.28 2.24 2.28 5.49 5.45 5.50 5.43 5.27 5.37 5.40 5.46 5.36 5.45 5.42 5.37 5.41 5.62 5.53 6.00 5.31 5.46 6.48 5.91 4.25 5.20 6.51 3.79 3.00 6.04 5.81 6.27 5.83 3.94 5.06 6.52 6.51 5.48 5.57 3.75 1.5^ 1.5^ 1.5^ 1.2^ 1.0^ 1.0^ 1.0^ 1.0^ 1.0^ 1.0^ 1.0^ 0.7^ 0.7^ 0.7^ 0.7^ 0.7^ 0.7^ 0.75 1.55 1.54 1.58 1.48 1.43 1.22 1.05 0.86 0.74 0.68 0.66 0.50 0.33 0.25 0.21 0.19 0.19 0.20 1.75 1.74 1.78 1.71 1.67 1.50 1.35 1.16 1.04 0.97 0.93 0.78 0.60 0.48 0.41 0.36 0.32 0.34 0.06 0.01 0.04 0.05 0.05 0.06 0.08 0.10 0.11 0.11 0.09 0.07 0.05 0.05 0.02 0.03 0.01 - 0.12 0.05 0.08 0.09 0.10 0.11 0.14 0.16 0.18 0.19 0.18 0.18 0.16 0.16 0.11 0.12 0.07 - PUBLIC FINANCE 2010 2011 2012 2010 2011 2012 2011 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 14,794.0 14,982.3 14,995.1 4,356.8 3,600.7 3,826.7 3,538.4 4,016.5 3,618.4 3,712.2 3,577.2 4,087.2 1,269.2 1,301.3 Current revenues 13,771.5 14,037.9 14,027.3 3,784.8 3,364.6 3,638.6 3,319.1 3,715.6 3,410.8 3,485.9 3,367.4 3,763.2 1,208.5 1,244.8 Tax revenues 12,848.4 13,209.2 13,117.6 3,489.9 3,155.9 3,451.0 3,129.7 3,472.7 3,172.7 3,314.0 3,170.4 3,460.5 1,141.3 1,177.8 Taxes on income and profit 2,490.7 2,723.5 2,656.6 706.4 635.4 827.7 562.9 697.5 629.5 723.0 511.1 793.1 237.9 295.4 Social security contributions 5,234.5 5,267.6 5,244.1 1,362.9 1,300.6 1,316.9 1,303.8 1,346.2 1,342.5 1,332.8 1,306.4 1,262.4 439.6 439.0 Taxes on payroll and workforce 28.1 29.2 25.6 8.1 6.7 7.6 6.7 8.2 7.2 6.4 5.8 6.1 2.5 2.6 Taxes on property 219.7 215.2 233.2 60.0 24.0 53.8 84.2 53.1 26.6 64.8 79.4 62.3 25.7 21.0 Domestic taxes on goods and services 4,780.7 4,856.2 4,876.0 1,325.9 1,165.5 1,217.4 1,148.4 1,324.9 1,164.0 1,164.5 1,244.1 1,303.3 426.2 410.9 Taxes on international trade & transactions 90.7 100.2 82.5 24.8 23.7 27.6 23.8 25.1 22.3 21.9 17.9 20.5 9.4 9.0 Other taxes 4.0 17.2 -0.4 1.8 -0.1 -0.1 -0.2 17.6 -19.4 0.5 5.8 12.8 0.0 0.0 Non-tax revenues 923.0 828.7 909.7 294.9 208.7 187.6 189.5 242.9 238.1 171.9 197.0 302.7 67.2 66.9 Capital revenues 175.7 65.3 61.8 121.9 7.6 21.6 14.4 21.7 10.5 10.8 11.7 28.7 3.4 7.3 Grants 12.6 10.4 9.2 5.0 2.4 3.0 1.0 4.0 1.3 1.8 1.6 4.5 1.1 0.8 Transferred revenues 109.5 53.8 51.6 102.9 2.3 0.4 50.5 0.6 0.1 0.5 50.0 1.0 0.1 0.1 Receipts from the EU budget 724.7 814.9 845.2 342.2 223.9 163.2 153.3 274.6 195.6 213.2 146.6 289.8 56.0 48.2 GENERAL GOVERNMENT EXPENDITURES TOTAL EXPENDITURES 16,692.7 16,546.3 16,117.9 4,586.9 4,191.6 4,159.0 3,955.7 4,240.0 4,326.5 3,857.4 3,836.0 4,097.9 1,476.9 1,322.8 Current expenditures 6,960.4 6,926.7 6,810.3 1,771.0 1,898.6 1,742.3 1,645.5 1,640.3 1,995.1 1,668.7 1,553.2 1,593.4 585.2 528.1 Wages, salaries and other personnel expenditures 3,912.4 3,882.7 3,728.0 980.0 967.0 1,010.3 955.0 950.4 958.3 973.9 910.8 885.1 377.7 320.3 Expenditures on goods and services 2,512.4 2,443.4 2,370.3 743.1 585.3 615.7 603.4 638.9 589.7 599.1 551.1 630.5 203.2 199.5 Interest payments 488.2 526.7 648.0 29.2 311.3 108.1 78.0 29.3 431.8 81.5 79.4 55.3 1.5 5.3 Reserves 47.4 73.9 64.0 18.8 35.0 8.2 9.1 21.6 15.3 14.3 11.8 22.5 2.8 2.9 Current transfers 7,628.5 7,818.9 7,684.7 1,973.6 1,942.5 2,076.4 1,855.7 1,944.4 1,957.3 1,878.7 1,903.2 1,945.5 781.7 658.8 Subsidies 581.9 496.3 502.5 194.7 171.2 127.6 69.1 128.2 177.1 107.8 57.3 160.2 36.8 49.9 Current transfers to individuals and households 6,277.7 6,533.5 6,383.6 1,562.9 1,606.6 1,745.6 1,583.0 1,598.3 1,609.2 1,588.7 1,636.6 1,549.1 673.0 537.8 Current transfers to non-profit institutions, other current domestic transfers 728.8 737.2 739.6 206.3 158.8 186.2 189.0 203.2 158.0 169.6 196.7 215.4 61.9 69.4 Current transfers abroad 40.1 52.0 59.0 9.6 5.9 17.0 14.5 14.6 13.0 12.5 12.6 20.8 9.9 1.7 Capital expenditures 1,310.6 1,023.5 912.3 584.3 168.8 196.5 266.5 391.6 165.3 179.2 223.4 344.5 62.0 80.3 Capital transfers 396.4 372.1 320.2 176.9 42.4 73.3 97.0 159.4 47.0 44.3 74.3 154.6 21.1 31.8 Payments to the EU budget 396.8 405.1 390.3 81.1 139.3 70.6 91.0 104.4 161.8 86.5 82.0 59.9 26.9 23.8 SURPLUS / DEFICIT -1,898.7 -1,564.1 -1,122.8 - - - - - - - - - - - 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. * Data on revenues for November 2012 include corrections in DURS records for the period January-October 2012, which were due to the rectification of technical errors in the new DURS information system. 2011 2012 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 11M 12 1,097.3 1,220.5 1,220.6 1,290.5 1,361.2 1,364.8 1,181.7 1,094.3 1,342.3 1,283.2 1,159.7 1,269.3 1,188.8 1,234.9 1,153.5 1,300.4 1,304.0 1,482.8 1,037.4 1,181.0 1,100.8 1,235.8 1,265.0 1,214.8 1,152.0 1,056.4 1,202.5 1,230.7 1,101.4 1,153.8 1,120.0 1,189.9 1,057.5 1,256.4 1,228.5 1,278.3 976.9 1,111.6 1,041.2 1,170.4 1,185.5 1,116.8 1,106.6 952.1 1,114.0 1,174.5 1,049.3 1,090.3 1,059.0 1,107.5 1,003.9 1,188.8 1,161.5 1,110.3 106.0 221.0 235.8 223.8 227.5 246.2 214.7 219.2 195.6 248.3 194.8 279.9 91.6 210.5 209.0 215.7 311.1 266.3 436.3 431.5 436.1 416.5 444.0 485.8 443.5 438.0 461.0 441.3 449.0 442.5 432.2 446.0 428.2 430.0 360.0 472.3 2.7 1.9 2.1 2.6 2.4 3.3 2.0 2.0 3.2 2.2 2.2 2.0 2.2 1.7 1.9 2.0 1.6 2.5 25.4 30.8 28.0 4.7 33.9 14.5 8.2 9.7 8.7 10.5 27.4 26.9 26.3 26.4 26.6 20.0 30.5 11.9 397.3 420.1 331.1 456.6 495.4 373.0 443.6 282.4 438.0 460.7 371.2 332.7 496.8 414.2 333.2 512.5 444.9 346.0 9.2 6.4 8.2 7.3 8.6 9.2 6.7 7.3 8.3 8.8 6.6 6.5 5.9 5.6 6.3 7.6 7.5 5.4 -0.1 -0.1 0.0 58.9 -26.3 -15.0 -12.1 -6.6 -0.7 2.7 -1.9 -0.3 4.2 3.0 -1.4 1.0 5.9 5.9 60.5 69.4 59.6 65.5 79.5 98.0 45.4 104.3 88.5 56.2 52.1 63.6 60.9 82.4 53.6 67.6 67.0 168.0 5.1 4.2 5.1 3.6 6.1 12.0 2.2 4.2 4.1 2.4 3.5 4.8 4.7 2.9 4.1 3.6 5.3 19.9 0.3 0.3 0.5 0.5 2.2 1.2 0.2 0.3 0.8 0.6 0.9 0.4 0.4 0.7 0.4 0.3 1.1 3.1 0.2 0.0 50.3 0.2 0.2 0.3 0.1 0.0 0.0 0.1 0.0 0.4 0.0 0.1 49.8 0.5 0.2 0.3 54.3 35.1 63.9 50.3 87.6 136.6 27.2 33.5 134.9 49.4 53.9 109.9 63.7 41.3 41.6 39.7 68.9 181.2 1,308.6 1,321.4 1,325.8 1,328.8 1,368.3 1,542.9 1,491.0 1,446.9 1,388.7 1,366.7 1,249.3 1,241.5 1,346.7 1,241.2 1,248.1 1,332.7 1,352.4 1,412.7 535.5 540.4 569.6 544.4 530.7 565.2 679.4 648.3 667.4 628.1 515.4 525.2 530.0 507.0 516.2 563.7 530.6 499.0 321.5 320.6 312.8 322.2 320.0 308.2 331.1 316.5 310.7 329.8 315.6 328.5 323.3 305.0 282.5 294.3 314.8 276.0 207.4 215.5 180.5 196.4 204.5 238.0 206.6 191.7 191.4 216.0 192.1 191.0 199.0 195.1 157.0 215.4 209.5 205.6 3.9 2.3 71.7 21.9 1.9 5.6 136.4 134.8 160.6 77.3 2.6 1.6 5.1 2.2 72.1 48.5 2.3 4.5 2.6 1.9 4.5 3.9 4.3 13.4 5.4 5.3 4.7 5.0 5.2 4.1 2.5 4.7 4.6 5.5 4.1 13.0 620.8 619.8 615.0 607.7 642.7 694.0 707.5 632.8 617.1 638.5 627.2 613.0 697.0 607.4 598.8 611.3 662.3 672.0 22.7 22.9 23.6 17.0 39.3 71.9 117.0 40.5 19.6 47.2 31.8 28.8 14.7 20.6 22.0 27.4 68.1 64.7 530.5 529.9 522.6 526.4 540.0 531.9 535.4 534.5 539.3 530.2 531.1 527.4 611.7 519.8 505.1 524.2 511.8 513.0 61.5 65.9 61.6 63.0 62.3 77.8 49.0 53.4 55.6 56.3 59.0 54.2 67.3 62.3 67.0 56.7 70.0 88.7 6.2 1.1 7.2 1.2 1.1 12.4 6.1 4.3 2.6 4.6 5.2 2.7 3.3 4.6 4.7 3.0 12.3 5.5 78.5 105.5 82.5 94.6 111.5 185.6 56.7 55.0 53.6 50.9 63.9 64.3 76.7 72.4 74.2 86.5 95.7 162.3 41.4 29.1 26.5 49.3 48.1 61.9 12.3 18.6 16.1 14.3 10.2 19.8 23.5 24.5 26.3 43.3 41.6 69.7 32.3 26.5 32.1 32.8 35.3 36.2 35.1 92.2 34.6 34.9 32.5 19.1 19.5 29.9 32.6 27.9 22.2 9.8 - - - - - - - - - Acronyms Acronyms in the text AJPES - Agency of the Republic of Slovenia for Public Legal Records and Related Services, BCI - Business Climate Indicator, BoE - Bank of England, BoJ - Bank of Japan, BS - Bank of Slovenia, CNY - Chinese yuan, DAB - draft amending budget, DESTATIS - Statistisches Bundesamt - Federal Statistical Office, EC - European Commission, ECB - European Central Bank, EIA - Energy Information Administration, EMU - European Monetary Union, ES - European Council, ESI - Economic Sentiment Indicator, ESS - Employment Service of Slovenia, Euribor - Euro Interbank Offered Rate, EUROSTAT - Statistical Office of the European Union, FED - Federal Reserve System, GBP - British pound, GDP - Gross domestic product, HICP-Harmonised Index of Consumer Prices, IMAD - Institute of Macroeconomic Analysis and Development, IMF - International Monetary Fund, ISTAT - Italian National Institute of Statistics, JPY - Japanese yen, KRW - South Korean won, Libor - London Interbank Offered Rate, MF - Ministry of Finance, MIP - Ministry of Infrastructure and Spatial Planning, MKO - Ministry for Agriculture and the Environment, MZIP - Ministry of Infrastructure and Spatial Planning of the Republic of Slovenia, NEER -Nominal Effective Exchange Rate, NFI - Non-monetary Financial Institutions, PMI - Purchasing Managers Index, PRS - The Slovenian Business Register, REER - Real Effective Exchange Rate, RS - Republic of Slovenia, RULC - Relative Unit Labor Cost, SCA - Standard Classification of Activities, SMA - Securities Market Agency, SORS - Statistical Office of the Republic of Slovenia, SRE - Statistical Register of Employment, ULC - Unit Labour Costs, USD - US Dollar, ZUJF - The Public Finance Balance Act. 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 of recorded media, 19- Manufacture of coke andrefinedpetroleum 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- Manufactureof motorvehicles,trailersand semi-trailers, 30- Manufactureof othertransportequipment, 31 - Manufacture of furniture, 32 - Other manufacturing, 33 - Repair and installation of machinery and equipment, D-Electricity,gas,steamandairconditioningsupply,E-Watersupplysewerage,wastemanagementandremediationactivities, 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 2013, No. 2, Vol. XIX