Slovenia's business sentiment index hits highest since April 2008

Slovenia's business sentiment index rose to its highest level in nearly nine years in January against a backdrop of improving employment numbers, while tourist numbers also increased. The statistics office said on Wednesday its index rose to +10 in January, up 1.5 points from December to a level not seen since April 2008. Overnight tourist stays rose by 13 percent year-on-year in November, separate data showed.
Business sentiment was 6.2 points higher than in January 2016 although confidence among retailers and construction firms decreased in January.
"I see no reason why the business sentiment would not continue improving through this year. Employment is rising, wages are rising and that is improving optimism among consumers and in the economy," said Saso Stanovnik, chief economist at investment firm Alta Invest.
Slovenia's jobless rate fell to the lowest level since 2009 in September with 10.3 percent and although it has risen slightly since then the number of jobless is expected to fall this year.
The statistics office also said 66 percent of overnight stays in November were made by foreign tourists, mostly from Austria, Italy, Germany, Croatia, Serbia and Russia, with the number of tourists from Russia rising the most, by 42 percent.
In the first 11 months of 2016 the number of tourist overnight stays increased by 8 percent compared with the same period of 2015.
Slovenia, which narrowly avoided an international bailout for its banks in 2013, returned to growth in 2014 and the government expects the economy to expand by 2.9 percent this year, pushed up by exports and domestic spending, versus 2.3 percent in 2016.