First estimates on the performance of private sector in the Q1 2022 showed that companies were not able to fully transfer higher prices of raw materials and energy into final prices, as gross margin decreased by 3 percentage points q-o-q to 22% (measured as share of value added in sales). It was at this level in 2018. In mining (-8 p. p.), energy (-10 p. p.) and in service activities (finance, professional, scientific and technical activities, healthcare), the declines were the largest. In manufacturing and trade, two sectors that otherwise generate the highest nominal added value and employ the most people, the gross margin fell by 1 p. p. Accounting for this fact it may sound odd how Slovenia’s was able to record positive GDP growth in the Q1 2022. This can be explained by high sales growth, which stems from price growth, which rose nominally much more than value added. But despite that real value added increased, albeit at lower pace. Despite the decline in gross margin, the share of labor costs in value added fell further (to 57% from 58% in the previous quarter), which means that labor costs grew more slowly than value added. The mentioned data does not provide other, quantitatively useful data. Source: Statistical Office of the Republic of Slovenia