By: Vida Kocjan
The Prime Minister, Robert Golob, has mishandled everything that can be mishandled. Slovenia has one of the highest inflation rates in the European Union, the volume of sales in trade and service activities is in free fall, and exports are decreasing.
The situation is deteriorating in the private service sector as well, which constitutes the majority of the gross domestic product. We are witnessing a decline in industrial production and a decrease in the economic freedom index. Electricity consumption in Slovenia has been declining for the past 18 consecutive months, with the most significant drop (by more than a tenth) in manufacturing activities. This implies a month-to-month reduction in industrial production. Slovenia stands out in the EU for its tax and contribution burdens, where the situation is tightening.
A significant weakness in Slovenian reality, both in the economy and among the population, is high inflation. According to the latest statistical data, the prices of essential goods and services increased by 6.9 percent on an annual basis. Yearly inflation is primarily a reflection of the rising costs of food and electricity. Inflation in Slovenia is significantly higher than in eurozone countries. According to Eurostat, the eurozone had a 4.3 percent growth in October, with inflation being the lowest since July 2021. Slovenia, with 6.9 percent, was well above the average for the eurozone.
Inflation in Slovenia began to rise significantly with the onset of the government led by Robert Golob. For comparison, the annual inflation rate in March last year in the eurozone countries was 7.4 percent, while in Slovenia, it was 6 percent, almost a quarter lower. This year’s situation is reversed. Economist Dr Matej Lahovnik comments on the latest data with the words: “The key challenge is how to reduce inflation to the level of the eurozone; otherwise, the competitive position of the Slovenian economy will continue to deteriorate.” There is nothing more to add to this! The question is whether Golob’s government will be able to achieve this. It is challenging! Their priorities are elsewhere and not with the population and the economy of this country.
