Most sectors in Slovenia at increased risk, shows survey

Even though global economic growth has stabilised in the first half of 2024, manufacturing companies continue to face full inventories and declining demand, the insurance companies this week summed up the results of a risk assessment survey that was carried out across 18 industries in 66 countries.

When it comes to Slovenia the situation is not looking good, Acredia said. Although not a single sector is considered to be at high risk, the survey still found most face increased risk.

Only six industries are at medium risk and none at low risk. The automotive, agri-food and mechanical engineering industries are those with a concerning situation.

"The local car industry is mostly facing falling profitability, increasing price competition and geopolitical tensions in relation to China, while the mechanical engineering industry is beset with a lack of new orders and volatile prices of raw materials," said Michael Kolb, a management board member at Acredia.

Meanwhile, the agri-food industry faces the consequences of climate change. Another factor is the high cost of energy needed for processing and packaging, which reduces profit margins.

Also deemed higher-risk sectors were construction, pharmaceuticals, electronics, transport, household appliances, textile, paper and metal industries.

Meanwhile, the survey detected moderate risks in the chemical, retail, transport equipment, software services, computer and energy industry.