Information about Slovenia
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Home > Country profiles > Economic and Political Outline
Slovenia: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Member of the European Union since May 2004 and of the eurozone since 2007, Slovenia is an advanced, reliable and independent country, which underwent successful economic transition in the 2000s. Slovenia is an open market and there is a long tradition of trading with neighboring countries such as Germany, Austria and Italy. Because of its stability, the Slovenian economy has long performed well. Slovenia boasts a skilled and productive labor force and its unemployment rate has long been among the lowest in Europe.
However, since 2011, the country has faced social and financial difficulties caused in part by its strong integration into the European economy. Economic growth is not likely to exceed 1.7% in 2012. Unemployment has doubled in the last three years (12% in 2011), public debt too has increased and is expected to pass the 50% GDP mark in 2012 (it was only 23.4% in 2007). The new Conservative government elected in December 2011 has adopted an austerity budget including a decrease in the deficit and government spending, wage freezes, reduced state spending and a pension reform which increased the retirement age from 63 in 2011 to 65.
Slovenia has many economic advantages and remains an economically dynamic country, however its economic health depends largely on that of its neighbors.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 49.16 | 47.73e | 52.43 | 54.41 | 56.63 |
| GDP (Constant Prices, Annual % Change) | -8.1 | 1.2e | 1.9e | 2.0 | 2.4 |
| GDP per Capita (USD) | 24,390 | 23,648 | 25,939e | 26,905 | 27,989 |
| General Government Balance (in % of GDP) | -4.4 | -3.9e | -3.6e | -3.6 | -3.1 |
| General Government Gross Debt (in % of GDP) | 35.5 | 37.3e | 43.6e | 47.2 | 49.2 |
| Inflation Rate (%) | 0.9 | 1.8e | 1.8e | 2.1 | 2.3 |
| Unemployment Rate (% of the Labor Force) | 5.9 | 7.3 | 8.2 | 8.0 | 7.6 |
| Current Account (billions USD) | -0.64 | -0.39 | -0.90 | -1.12 | -1.23 |
| Current Account (in % of GDP) | -1.3 | -0.8 | -1.7e | -2.2 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
During the last few years, agriculture has declined considerably, contributing only 2.5% to the GDP (compared to 4.2% in 1995).
The industrial sector represents about one third of the GDP. Historically, the dominant industries in Slovenia were forestry, textile and metallurgical industry. Since the 1980s, the mechanical industries (automobile, tool machines) and the high value-added industries (electronics, pharmacy, chemicals) have been greatly developed.
The Slovenian economy is becoming more and more based on services. This sector, which represents more than 60% of the GDP, has experienced a strong growth during the last ten years, especially in the fields of information technology and communication, financial and commercial services and retail business. Tourism too is booming and remains a sector with high economic potential.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 9.1 | 33.0 | 57.4 |
| Value Added (in % of GDP) | 2.4 | 33.9 | 63.8 |
| Value Added (Annual % Change) | -4.1 | -16.2 | -2.6 |
Source: World Bank - Last Available Data.
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| Monetary Indicators | 2002 | 2003 | 2004 | 2005 | 2006 |
| Euro (EUR) - Average Annual Exchange Rate For 1 USD | 240.25 | 207.11 | 192.38 | 192.71 | 191.03 |
Source: World Bank - Last Available Data.
Find out all the exchange rates daily on our service Currency converter.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
See the Country Risk Analysis Provided By Ducroire.
Slovenia is a founding member of WTO. It is highly open to foreign trade, which represents more than 100% of its GDP. Its three main clients are Germany, Italy and Croatia. More than 40% of its GDP is exported into the European Union, especially vehicles, electric & electronic equipment and pharmaceutical products. Its network of SMEs is recognized for its innovative capabilities and environmental friendliness. As a platform between Western and South-Eastern Europe, Slovenia is the second largest foreign investor in the Balkans.
Its three main suppliers are Germany, Italy and Austria. The country's main imports are vehicles, machinery, mineral fuels and oil, iron and steel.
This high level of openness makes Slovenia very dependent of the economic health of its main commercial partners. Due to the drop in global demand in 2008-2009 and the following economic difficulties of teh EU countries in 2011, Sloven exports have decreased and the deficit of the trade balance has deteriorated.
Foreign trade in Slovenia is structurally in deficit with Western Europe where its main partners are located. Some exports have shown resistance to the economic crisis, especially metals and generic pharmaceutical products, as well as the exports of tool machines and electronic equipment. Once the economic conditions of Slovenia's main partners (Italy and Germany) improves, the level of imports and exports should revive and increase again in 2012.
| Foreign Trade Indicators | 2007 | 2008 | 2009 | 2010 | 2011 |
| Imports of Goods (million USD) | 31,559 | 37,034 | 26,507 | 29,998 | 35,417 |
| Exports of Goods (million USD) | 30,102 | 34,128 | 26,177 | 29,423 | 34,731 |
| Imports of Services (million USD) | 4,196 | 5,085 | 4,301 | 4,311 | 4,603 |
| Exports of Services (million USD) | 5,666 | 7,376 | 5,964 | 6,127 | 6,953 |
| Imports of Goods and Services (Annual % Change) | 16.3 | 2.9 | - | - | - |
| Exports of Goods and Services (Annual % Change) | 13.7 | 2.9 | - | - | - |
| Imports of Goods and Services (in % of GDP) | 71.3 | 70.4 | 56.6 | - | - |
| Exports of Goods and Services (in % of GDP) | 69.5 | 67.4 | 58.1 | - | - |
| Trade Balance (million USD) | -2,314 | -3,881 | -996 | -1,602 | - |
| Trade Balance (Including Service) (million USD) | -887 | -1,775 | 626 | 128 | - |
| Foreign Trade (in % of GDP) | 140.8 | 137.8 | 114.7 | - | - |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| Germany | 19.8% |
| Italy | 12.2% |
| Austria | 8.2% |
| France | 8.1% |
| Croatia | 6.7% |
| Serbia | 3.6% |
| Poland | 3.5% |
| Hungary | 3.0% |
| Russia | 2.9% |
| Bosnia and Herzegovina | 2.9% |
| United Kingdom | 2.5% |
| Czech Republic | 2.4% |
| Netherlands | 2.0% |
| Romania | 1.6% |
| United States | 1.5% |
| Slovakia | 1.5% |
| Spain | 1.3% |
| Belgium | 1.1% |
| Turkey | 1.1% |
| Switzerland | 1.0% |
| See More Countries | 45.0% |
| Main Suppliers (% of Imports) |
2010 |
| Germany | 16.2% |
| Italy | 15.8% |
| Austria | 7.9% |
| France | 5.4% |
| China | 5.3% |
| Croatia | 3.8% |
| Hungary | 2.9% |
| Spain | 2.7% |
| United States | 2.5% |
| Czech Republic | 2.4% |
| Poland | 2.2% |
| Netherlands | 2.0% |
| Switzerland | 2.0% |
| Serbia | 1.8% |
| Russia | 1.7% |
| Bosnia and Herzegovina | 1.6% |
| United Kingdom | 1.5% |
| Belgium | 1.5% |
| Slovakia | 1.4% |
| Turkey | 1.2% |
| See More Countries | 49.4% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
To go further, check out our service Import export flows.
Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The Council of Ministers (cabinet) is nominated by the Prime Minister and elected by the parliament.
National Assembly (the lower house) having 90 seats; out of which 88 are elected through proportional voting and 2 members elected by ethnic minorities to serve four-year terms,
and the National Council (the upper house, more like an advisory body) having 40 seats; with its members elected indirectly (members representing social, economic, professional, and local interests) to serve five-year terms. National Assembly is the most important power centre in the country. The executive branch of government is directly or indirectly dependent on the support of the National Assembly.
Source: Worldwide Press Freedom Index 2011, Reporters Without Borders
Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
Map of freedom 2010
Source: Freedom House
Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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