Private Consumption & Household Indebtedness

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Description: According to the first annual estimate, Slovenia's household consumption increased by 5.3% last year. The largest increases were seen in household expenditure on durable goods. The relatively high 2007 growth -- the average annual growth in 2000-2006 totaled only 2.5%, according to the revised data -- was most likely due to the increase in disposable income on account of the personal income tax scale changes and favorable developments on the labor market. Relatively high growth in consumption of durable goods continued in the first half of this year. In the third quarter, a slowdown in the number of new car registrations was observed after almost two years of strong growth. A decreased value of net loans can also be indicative of a slowdown in consumption growth.
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