Slovenian Economic Mirror


Slovenian Economic Mirror

Slovenian Economic Mirror 3/2022

In view of the significant increase in uncertainty in the international environment, business expectations point to a further slowdown in the growth of exports and export activities. Trade in goods and manufacturing output declined in the first two months as supply chain disruptions continued. Following Russia’s military aggression against Ukraine, export sentiment deteriorated in the face of significantly lower export expectations. Activity in sectors relying on domestic demand remained favourable at the beginning of the year. With the lifting of the recovered/vaccinated/tested rule, along with expected further price increases and the fear of a possible shortage of some goods due to the crisis in Ukraine, activity was higher in the first quarter in trade and most other services. Consumer confidence fell sharply in March, while confidence remained high in trade and services and in construction. Inflation fell slightly in March due to a temporary drop in electricity prices. Conditions in the labour market continue to be very favourable, but labour shortages have put upward pressure on wage growth in some activities.