Slovenian export growth boosted by pharmaceuticals -government institute

Krka dd Novo Mesto

10/10/2019 14:47

LJUBLJANA, Oct 10 (Reuters) - Slovenia's export growth
remains strong, mainly due to exports of pharmaceutical
products, despite global economic risks and expected lower
growth in the country's main trading partners, the government's
macroeconomic institute said.
    "Exports rose by 9.4% year-on-year in the first seven months
(of 2019), mainly due to exports of medical and pharmaceutical
products," UMAR said in a report on Thursday.
    "Export growth of other important products was significantly
lower, which is due to slowdown of growth in our main trading
partners, particularly Germany," the institute said, adding
slower economic growth continues.
    The institute last month reduced its 2019 GDP growth outlook
to 2.8% from the 3.4% it forecast in March, mainly due to a
slowdown in its main trading partners. Slovenia's economy
expanded by 4.1% in 2018.  urn:newsml:reuters.com:*:nL5N26332G
    Slovenia exports about 80% of its production, mostly to
other EU states, with Germany accounting for about 20% of all
exports. Its main exports include pharmaceuticals, cars and car
parts and household appliances.
    Slovenia has two large pharmaceutical companies which are
among the three largest exporters in the country: Lek, a
subsidiary of Swiss Novartis  NOVN.S  and Krka  KRKG.LJ , which
is the country's largest listed company.
    The institute said household spending is on the rise due to
higher income and steep rise of consumer loans. The government
this year raised most public sector salaries and cut taxes on
annual one-off holiday payment which employees usually receive
before the summer holidays. urn:newsml:reuters.com:*:nL5N2277V2
    It said wages increased by 4.4% year-on-year in the first
seven months of 2019 versus 3.6% in the same period of 2018.  

 (Reporting by Marja Novak; Editing by Alexander Smith)
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805, Reuters
Messaging: marja.novak.thomsonreuters.com@reuters.net))