So Much For An Economic Boom

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SBI20 index tumbles

Item: In the last quarter of 2007 Slovenian GDP has risen a modest 4,7 compared to previous results and growth is expected to slow down

Item: Inflation in March 2008 reached 1.3 percent, yearly inflation is now at an astonishing 6.9 percent – the highest in eurozone

Item: Average net income in February 2008 was 864.50 EUR and more than 65% of Slovenes earnes less than that

Item: Slovenian Stock Exchange apparently entered a downward spiral with all the main indices (trading at more than double the return just two months ago) experiencing a negative return on capital on a yearly basis and losing over a billion euros in stock value in just a couple of months

Question: So, where exactly is the much hailed economic boom? Went out for a smoke?

Sources of statistical data: www.stat.si

Published by

pengovsky

Agent provocateur and an occasional scribe.

9 thoughts on “So Much For An Economic Boom”

  3. OH MY GOD, ALL MY SAVINGS…. I’AM PURE.
    …OK, WE ALL HAVE LOVE, NO ONE CAN TAKE IT FROM US. AIN’T IT ROMANTIC? VERSUS ALL THIS ECONOMIC SH**?!

  4. The boom is there and a huge one, too.
    Isn’t boom the sound of a rock falling down and hitting you on the head. Well, that is the boom we are having just now.

  6. Like I said before – the “boom” was not the result of the SLO government work and neither is this bust (pardon the pun). Google worldwide credit crisis.

    It is however extremely funny to see the folks who were whining that NKBM was sold too cheaply a couple of months ago. What are they saying now?

  7. I don’t know, actually… I’d have to see what Finance says on the issue 🙂

    However, if I remember the argument correctly (but don’t take my word for it), the critics of NBKM sale said that it was sold too cheaply to Slovenian financial power-boys so that they will make a quick buck and then get rid of the stock.

    The credit crisis, however, has yet to hit Slovenia. What LJSE dowturn shows is that stock prices were inflated beyond any reasonable level (I mean, 100+ percent gain in a year?!?). Unfortunatly, the crunch will add to a substaintially poorer overall economic perfomance. Government or no government

  8. The gains on LJSE were powered also by the expectations of mergers and acquisitions – look at Telekom, Petrol, Krka rumors. The M&A were powered by cheap money in the last couple of years. By loans (credits in SLO terminology). Now that the big banks are in trouble, the loans for leveraged M&A operations are scarce. LJSE is falling also because M&A possiblities were figured into the prices.

    As far as the credit crisis, look at the movement of TOM (the SLO sort-of equivalent of prime rate).

    http://www.stat.si/indikatorji.asp?id=22

    TOM is on the level it was in Feb 2003 and rising. Methinks a little credit crunch for the SLO real-estate investors might be in the works and I ain’t none too sorry for them bastards.

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