Macroeconomic environment

zgradba banke slovenije

October 23, 2026

The economy remains resilient to heightened geopolitical tensions, while inflation is gradually picking up

In the third quarter, favourable economic conditions continued in both the euro area and Slovenia. Despite heightened geopolitical tensions, economic growth remains resilient and broad-based. At the same time, inflation is gradually rising, particularly due to higher energy prices, and remains above 3% in both the euro area and Slovenia. In the domestic economy, labour market conditions remain stable, while annual wage growth remains high.

In focus

Energy shocks and their impact on the European and domestic economies

The energy shock of 2021–2022 significantly increased production costs for European industry and weakened its position relative to major global competitors. Despite some moderation, electricity and natural gas prices in Europe remain significantly higher than in the US and China. The September 2026 Review of Macroeconomic Developments therefore takes a closer look at how energy shocks are transmitted through the economy, how firms and the banking system respond, and the role of economic policies in adapting to them.

Energy shocks can have different effects on the economy, with their origin playing an important role. We find that their effects are significantly more adverse when higher energy prices result from constrained supply than when they are driven by stronger global demand. In such circumstances, the scope for economic policies to mitigate the consequences is also limited, making a coordinated response across different policy areas important.

Model-based nowcasts of quarterly GDP growth

Current data

Economic activity

Inflation

Labour Market

Balance of Payments

Macroeconomic projections

Economic publications

Naslovnica publikacije
October 23, 2026

Review of macroeconomic developments, October 2026

Naslovnica publikacije
September 3, 2026

Review of macroeconomic developments, September 2026

Naslovnica publikacije
June 16, 2026

Review of macroeconomic developments and projections, June 2026

Naslovnica publikacije
April 21, 2026

Review of macroeconomic developments, April 2026

Research publications

Naslovnica publikacije
September 30, 2026

Miha Breznikar and Domen Pavlič: Disentangling the electricity supply curve: the role of green and brown energy sources

Naslovnica publikacije
September 30, 2026

Domen Pavlič: Sectoral Shock Transmission in Euro Area Services Inflation

Naslovnica publikacije
July 31, 2026

Nejc Perme: Inflation shock momentum for the euro area

Naslovnica publikacije
July 30, 2026

Ajda Marjanovič: Monetary Policy Conditions Indicator in the Euro Area and the United States