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2021. Additionally, the prevalence of fixed-rate financing for new loans plays a role in this slower transmission.
5.11.3 Industry
In the first nine months of 2023, industrial output in Slovenia fell by 5.3% y/y. Since December 2022, there has been a continuous annual decline in industrial production.
The biggest annual decline was seen in the electricity, gas, steam and air conditioning supply sector, of 34.2%. The output in mining and quarrying was lower 23.3% y/y, while in the key manufacturing sector it fell by 3.8% y/y in the first nine months.
The industries that attract the highest Foreign Direct Investment (FDI) include manufacturing, financial and insurance services, wholesale and retail, as well as the real estate sector.
5.11.4 Major Sectors & Companies
Key industrial sectors in Slovenia are the automotive industry, mobility,
ICT, electrical industry, pharmaceutical industry and metal processing.
In October 2023, it was reported that KLS Ljubno, a key automotive industry supplier in Slovenia, made a recovery and was operating at 25% of its full capacity following a production standstill caused by the devastating floods in August. This setback had an impact on major car manufacturers, notably Volkswagen, a prominent German automaker. As reported by bne IntelliNews, the flood-induced damages at KLS Ljubno were a contributing factor to the cessation of production at Volkswagen's plant in Portugal towards the end of August.
Mirko Strasek, the CEO of KLS Ljubno, previously communicated to the media that further disruptions in production were anticipated, given the company's constrained supply capabilities. Slovenia holds a pivotal role as an auto component hub, with nearly every European automobile incorporating at least one component sourced from the country.
Flooding in Slovenia resulted in $7.6bn in damage to infrastructure and manufacturing, significantly affecting global automotive supply chains. Subsequently, Volkswagen declared production slowdowns, contributing to third-quarter earnings that were weaker than anticipated.
Reuters reported in November that French car manufacturer Renault is set to introduce a new line of high-performance electric vehicles under its independent unit, Ampere, in Slovenia. The company's objective is to emerge as a leading player in the electric vehicle sector, aiming to produce one million vehicles annually by the year 2031.
Renault is to announce the launch of an additional "affordable" city electric car as part of its capital markets day dedicated to the new EV unit, Ampere. The forthcoming Renault-branded electric vehicle is
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