Page 115 - SE Outlook Regions 2022

3.11.3 Industry

The growth of industrial production is expected to slow down to 5.1% in
2022, from estimated 10.6% in 2021, according to Erste.

According to the Slovenian central bank, the situation in industry
remained favourable, although firms are reporting high capacity
utilisation and shortages of intermediate goods, which is already
curtailing growth in exports. Firms are also seeing growth curtailed by
higher commodity prices and energy prices, and a shortage of skilled
labour. Quarterly growth in value-added in industry thus slowed to 0.5%
in the third quarter of 2021. Other sectors saw current growth in activity
either maintain the same level as in the second quarter, or pick up the
pace.

Year on year, industrial production increased by 6.2% in October, after
rising by 7.8% y/y in September.

In October 2021, the total value of stocks in industrial production was
1% higher than in September 2021. It was 9.6% higher than in October
2020 and 10.6% higher than in October 2019.

3.11.4 Energy & power

Slovenia is counting on nuclear energy in its energy transition since
renewable sources will not be enough to cover the production shortfall
once coal is phased out given that the country has missed many
opportunities already, Infrastructure Minister Jernej Vrtovec said in
November.

In April 2021, Slovenia’s government adopted a resolution on the
country's long-term climate strategy aimed at net zero emissions by
2050 in line with EU targets on climate neutrality.

Under the long-term strategy, Slovenia plans to cut greenhouse gas
emissions by 80-90% by 2050 compared to 2005 and boost the
implementation of the policies of adjusting to climate change and
providing for climate safety.

According to the plans, Slovenia expects to spend between €21bn and
€27bn to achieve net-zero greenhouse gas emissions by 2050.

Slovenia has joined the Alliance for Strengthening Coal Exit initiative as
part of its efforts to strengthen the global energy transition, the
infrastructure ministry announced in November.

Slovenia also supported the Declaration on Public Support for a Clean
Energy Transition, whose purpose is to make international commitment
to switch to clean energy and away from fossil fuels, and which is
essential to limit the rise in global temperature to 1.5°C.

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