Macroeconomic environment
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.
Current posts
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
More about macroeconomic projections
Economic publications
Review of macroeconomic developments and projections, June 2026
Research publications
Miha Breznikar and Domen Pavlič: Disentangling the electricity supply curve: the role of green and brown energy sources
Domen Pavlič: Sectoral Shock Transmission in Euro Area Services Inflation
Ajda Marjanovič: Monetary Policy Conditions Indicator in the Euro Area and the United States