Nonfinancial sector accounts, 1st quarter 2022
For the first time in ten years, the Slovenian economy generated a deficit with the rest of the world
The Slovenian economy and non-financial corporations ended the first quarter of 2022 with a deficit, financial corporations reduced their surplus, general government revenues increased and expenditures decreased, and households significantly reduced their surplus.
Total economy generated a deficit with the rest of the world
In the first quarter of 2022, the total economy surplus (net lending) with the rest of the world turned into a deficit (net borrowing) for the first time in ten years. It amounted to EUR 106 million or 0.8% of GDP. Compared to the first quarter of 2021, it decreased by EUR 1,082 million.
With strong domestic demand and amid tension in the international environment, growth in exports of goods and services (24.2%) was again outpaced by growth in imports of goods and services (37.9%). The growth of trade in goods was higher than the growth of trade in services on both the import and export side. As a result, the surplus in trade with goods and services decreased significantly (by EUR 951 million) compared to the first quarter of 2021 and amounted to EUR 83 million or 0.6% of GDP.
The value of primary incomes, current transfers and capital transfers received from abroad was lower (by EUR 269 million) than the value paid abroad.
Non-financial corporations operated with a deficit
After two consecutive quarters of operating with a surplus, non-financial corporations generated a deficit of EUR 311 million or 2.4% of GDP in the first quarter of 2022. Compared to the first quarter of 2021, it was lower by EUR 575 million.
The deficit of non-financial corporations was significantly affected by lower revenues from subsidies, increased expenditure on gross investment and increased expenditure on compensation of employees. Compared to the first quarter of 2021, revenues from subsidies decreased by EUR 224 million and amounted to EUR 72 million, mainly because government measures for non-financial corporations to mitigate the social and economic effects of the COVID-19 pandemic declined as the pandemic wanes.
Expenditures on gross fixed capital formation and inventories were higher than in the first quarter of 2021. Consequently, non-financial corporations' investment rate (the share of gross fixed capital formation in gross value added) increased by 0.8 p.p. and stood at 23.2%.
Compensation of employees (salaries and social security contributions) paid by corporations to their employees increased by EUR 547 million or 13.2%, and gross operating surplus (the part of income left at disposal of corporations for dividend payout and (partial) financing of investments) by EUR 215 million or 10.0%.
Financial corporations reduced their net lending position
The surplus of financial corporations (banks and insurance companies) decreased by EUR 7 million compared to the first quarter of 2021, and amounted to EUR 111 million or 0.8% of GDP. The surplus was lower mainly due to increased expenditure on gross capital formation and non-life insurance claims.
General government deficit lower
General government deficit is gradually decreasing, primarily due to the significant reduction in expenditure on subsidies, which were intended to mitigate the economic and social consequences of the pandemic, and to the growing economy and strong domestic demand, which were yielding high tax revenues (especially value added tax).
In the first quarter of 2022, it amounted to EUR 405 million or 3.1% of GDP, and in the same quarter of 2021 to EUR 919 million or 7.9% of GDP. Compared to the first quarter of 2021, general government revenues thus increased (by EUR 434 million or 8.3%), and general government expenditure decreased (by EUR 79 million or 1.3%).
Household net lending position significantly lower, consumption and investment activity higher
Gross disposable income grew by 9.9% compared to the first quarter of 2021, mainly due to favourable conditions on the labour market (for example, extremely high employment rate and wage growth). As a result, compensation of employees or income from work (6.2 p.p.) contributed the most to the growth of gross disposable income.
Growth of expenditure of households intended for consumption remained high in the first quarter of this year as well. Compared to the first quarter of 2021, household’s final consumption expenditure was higher by 29.6% or EUR 1,650 million (the impact of base effect should be taken into account, since a year ago consumption expenditure decreased).
Consequently, the high savings of households are gradually declining. In the first quarter of 2022, the gross households saving rate (share of gross saving in gross disposable income) was 11.4% and decreased by 13.4 p.p. compared to the first quarter of 2021. The reduction in the households saving rate was the largest so far.
After all, households significantly reduced the gap between savings and gross investment in the observed quarter (by EUR 337 million), as the growth of the latter was high (31.1% or 22.6 percentage points higher than in the first quarter a year ago).
As a result, household’s surplus decreased significantly (by EUR 1,013 million) and amounted to EUR 500 million or 3.8% of GDP, among other things due to lower savings and higher consumption and investment activity.
Tables with the latest data are available in the SiStat Database.
Account of Slovenia with the Rest of the World, current prices, Slovenia
Main aggregates of national accounts by institutional sectors, current prices, Slovenia
All the data are stated in nominal values and are not seasonally adjusted.