ANNUAL REPORT - HSE

13,705
GWh of electricity were sold by the HSE Group on the domestic
and foreign markets. Of these, 7,771 GWh were produced in
the HSE Group, meaning that the Group has preserved the
leading position among electricity producers in Slovenia.
ANNUAL REPORT HSE | BUSINESS REPORT
48
2.6 Market position
2.6.1 Characteristics of
the economic
environment in 2008 1
In 2008 the international financial crisis deepened,
which led to the projected risk of a slowdown in economic
growth becoming a reality. Data about domestic
activity and mainly the indicators of expected trends
reveal that the changes in the international environment
were, through smaller demand and significantly
more stringent financing conditions, transferred to
the Slovene economy.
4.1% economic growth
Primarily on account of poorer conditions in the international
environment, estimated economic growth in
2008 was 4.1%, which is 2.7% less than in 2007 (6.8%).
GDP at current prices was € 37,403 million in 2007 or
€ 18,329 per capita.
Real growth in exports decreased
and imports increased
Real growth in exports for 2008 is estimated at 5.8%,
whereas in 2007 it stood at 13%. Real growth in exports
decreased compared to 2007 due to a drop in foreign
demand, resulting in a major impact on reduced car
industry production and consequently vehicle export.
On the other hand, imports in real terms increased
by 6.5% in 2008. According to estimates, imports rose
slightly more than exports in real terms, which is why
the foreign trade balance had a negative influence on
economic growth, i.e. –0.6 percentage points.
Slowdown in domestic banks'
credit activity
While the credit activity of domestic banks gradually
1
Source: SORS, IMAD, MF
slowed down in the first ten months of 2008, it nearly
stopped in November on account of ever more stringent
conditions on international inter-bank markets
and reached the deepest trough since March 2005.
Only loans to the state somewhat increased, as in November
the state borrowed € 80 million net, whereas
the corporate sector recorded a modest positive net
credit flow, while the retail sector even repaid loans on
a net basis. Banks partly compensated for the loss of
funds from inter-bank markets with deposits made by
domestic clients who at the end of 2008 withdrew funds
from capital markets where negative trends persisted.
Growth in added value still the
highest in the construction sector
Added value in 2008 again rose most in the construction
sector, which was the fastest growing activity,
contributing 15.5% to the total increase in added value.
The high increase in added value was in 2008 seen
only in financial intermediation (11.4%).
Increase in unemployment rate
The indicators on the labour market are gradually deteriorating,
as in December 2008 the number of registered
unemployed was for the third month in a row
higher than the month before. According to SORS data,
the unemployment rate climbed to 7.0% by the end
of 2008, this being equal to 66,239 persons. The most
apparent were the consequences of layoffs in sectors
where production volume had to be reduced on account
of fewer and cancelled orders. The greatest rise was
recorded in the number of unemployed persons aged
30–50, predominantly men. Of the total 946,491 active
population, 880,252 were employed at the end of 2008.
2.1% growth in consumer prices
At 2008 year-end, inflation was considerably lower
than the year before. Year-on-year inflation further
decreased in December (2.1%) and inflation in 2008
averaged 5.7%. Similarly as in the past five months,