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Economy of Slovenia

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Economy of Slovenia
The city of Ljubljana is the capital and financial centre of Slovenia.
CurrencyEuro (EUR, €)
1 January – 31 December
Trade organisations
EU, WTO, OECD
Country group
Statistics
PopulationIncrease 2,120,547 (February 2024)[3]
GDP
  • Increase $72 billion (nominal, 2024)[4]
  • Increase $113 billion (PPP, 2024)[4]
GDP rank
GDP growth
  • 1.6% (2023)
  • 2.0% (2024)
  • 2.5% (2025)[4]
GDP per capita
  • Increase $34,026 (nominal, 2024)[4]
  • Increase $53,287 (PPP, 2024)[4]
GDP per capita rank
GDP by sector
  • 7.4% (2023)
  • 2.7% (2024)
  • 2.0% (2025)[4]
Population below poverty line
  • Positive decrease 14.4% at risk of poverty (2019)[6]
  • Negative increase 13.7% at risk of poverty or social exclusion (AROPE 2023)[7]
Negative increase 23.4 low (2023)[8]
Steady 56 out of 100 points (2023, 42nd rank)
Labour force
  • Increase 1,083,800 (2022)[10]
  • Decrease 77.5% employment rate (2023)[11]
Labour force by occupation
Unemployment
  • Positive decrease 4.5% (November 2021)[12]
  • Steady 11.2% youth unemployment (15 to 24 year-olds; June 2020)[13]
Average gross salary
€2,427 / $2,639 monthly (November 2023)
€1,594 / $1,733 monthly (November 2023)
Main industries
ferrous metallurgy and aluminum products, lead and zinc smelting; electronics (including military electronics), trucks, automobiles, electric power equipment, wood products, textiles, chemicals, pharmaceuticals, machine tools [14]
External
ExportsIncrease €52.9 billion (2022)[15]
Export goods
manufactured goods, machinery and transport equipment, chemicals, food [14]
Main export partners
ImportsIncrease €56.8 billion (2022)[15]
Import goods
machinery and transport equipment, manufactured goods, chemicals, fuels and lubricants, food
Main import partners
FDI stock
  • Increase $19.23 billion (31 December 2017 est.)[5]
  • Increase Abroad: $9.914 billion (31 December 2017 est.)[5]
Increase $3.475 billion (2017 est.)[5]
Positive decrease $46.3 billion (31 January 2017 est.)[5]
Public finances
  • Positive decrease 74.7% of GDP (2022)[16]
  • Positive decrease €38.857 billion (2022)[16]
  • €260 million surplus (2019)[16]
  • +0.5% of GDP (2019)[16]
Revenues44.2% of GDP (2019)[16]
Expenses43.7% of GDP (2019)[16]
Economic aid
Increase $889.9 million (31 December 2017 est.)[5]
All values, unless otherwise stated, are in US dollars.
GNI per capita:
  Slovenia ($23,520)
  Higher GNI per capita compared to Slovenia
  Lower GNI per capita compared to Slovenia

The economy of Slovenia is a developed mixed economy.[21][22] The country enjoys a high level of prosperity and stability as well as above-average GDP per capita by purchasing power parity at 92% of the EU average in 2022.[23] The nominal GDP in 2023 is 68.108 billion USD, nominal GDP per capita (GDP/pc) in 2023 is USD 32,350.[4] The highest GDP/pc is in central Slovenia, where the capital city Ljubljana is located. It is part of the Western Slovenia statistical region, which has a higher GDP/pc than eastern Slovenia.[24]

In January 2007, Slovenia became the first member to have both joined the European Union and adopted the euro, and the first ex-Yugoslav republic to join the eurozone. It has also been a member of the Organisation for Economic Co-operation and Development since 2010.[25]

Slovenia has a highly educated workforce, well-developed infrastructure, and is situated at a major transport crossroads.[25] The level of foreign direct investment is one of the lowest but has been steadily rising in the last few years. The Slovenian economy has been affected by the European economic crisis, which occurred in the late 2000s.[25] After 2013, GDP per capita began rising again.[26] Almost two-thirds of the working population is employed in services.[5]

History

[edit]

Although it comprised only about one-eleventh of Yugoslavia's total population, it was the most productive of the Yugoslav republics, accounting for one-fifth of its GDP and one-third of its exports.[27] Slovenia thus gained independence in 1991 with an already relatively prosperous economy and strong market ties to the West.

Since that time it has vigorously pursued diversification of its trade with the West and integration into Western and transatlantic institutions. Slovenia is a founding member of the World Trade Organization, joined CEFTA in 1996, and joined the European Union on 1 May 2004. In June 2004 it joined the European Exchange Rate Mechanism. The euro was introduced at the beginning of 2007 and circulated alongside the tolar until 14 January 2007. Slovenia also participates in SECI (Southeast European Cooperation Initiative), as well as in the Central European Initiative, the Royaumont Process, and the Black Sea Economic Council.

In the late 2000s economic crisis, the Slovenian economy suffered a severe setback. In 2009 the Slovenian GDP per capita shrank by 7.9%. After a slow recovery from the 2009 recession, thanks to exports,[28] the economy of Slovenia again slid into recession in the last quarter of 2011.[29] This has been attributed to the fall in domestic consumption and the slowdown in the growth of exports.[29] Slovenia mainly exports to countries of the eurozone.[25] The reasons for the decrease in domestic consumption have been multiple: fiscal austerity, the freeze in budget expenditure in the final months of 2011,[30] a failure in the efforts to implement economic reforms, inappropriate financing, and the decrease in exports.[31] In addition, the construction industry was severely hit in 2010 and 2011.[29] From 2014 onwards GDP of Slovenia is rising again.[32] The main factors of GDP growth are export and in the year 2016 also domestic consumption, which started to revive after the economic crisis. The GDP growth in 2015 was 2.3%;[19] in the first half of 2016 it was 2.5%, and in the 2nd quarter of 2016 it was 2.7%.[33] This means that GDP growth accelerated in 2016.

During the EU accession negotiations, Slovenia insisted on numerous derogations, refusing to open up certain key sectors of the economy to full competition. The country is the only one in Central and Eastern Europe to have retained control of its banking sector. The country has also preserved an important public service built during the socialist period: Slovenia still has one of the best healthcare systems in the world, and education is free up to the postgraduate level.[34]

Trade

[edit]

Slovenia's trade is orientated towards other EU countries, mainly Germany and Italy. This is the result of a wholesale reorientation of trade toward the West and the growing markets of central and eastern Europe in the face of the collapse of its Yugoslav markets. Slovenia's economy is highly dependent on foreign trade. Trade equals about 120% of GDP (exports and imports combined).[clarification needed] About two-thirds of Slovenia's trade is with other EU members.

This high level of openness makes it extremely sensitive to economic conditions in its main trading partners and changes in its international price competitiveness. However, despite the economic slowdown in Europe in 2001–03, Slovenia maintained a 3% GDP growth. Keeping labour costs in line with productivity is thus a key challenge for Slovenia's economic well-being, and Slovenian firms have responded by specializing in mid- to high-tech manufacturing. Industry and construction comprise about one-quarter of the GDP. As in most industrial economies, services make up an increasing share of output (57.1 percent), notably in financial services.

Agriculture

[edit]

Slovenia produced in 2018:

  • 350,000 metric tons (390,000 short tons) of maize;
  • 126,000 metric tons (139,000 short tons) of grapes;
  • 121,000 metric tons (133,000 short tons) of wheat;
  • 88,000 metric tons (97,000 short tons) of barley;
  • 86,000 metric tons (95,000 short tons) of apples;
  • 72,000 metric tons (79,000 short tons) of potatoes,

in addition to smaller amounts of other agricultural products. [35]

Neonicotinoids are commonly used as they are throughout the world, including the use of thiacloprid in the country's apple orchards. Smodiš Škerl et al (2009) found that thiacloprid/apple application practices leave a residue in the pollen but not in bee bread.[36]

Economic performance

[edit]

The historical primary industries of agriculture, forestry, and fishing contribute a comparatively low 2.5 percent of GDP, and engage only 6 percent of the population. The average farm is only 5.5 hectares. Part of Slovenia lies in the Alpe-Adria bioregion, which is currently involved in a major initiative in organic farming. Between 1998 and 2003, the organic sector grew from less than 0.1% of Slovenian agriculture to roughly the European Union average of 3.3%.[37]

Public finances have shown a deficit in recent years. This averaged around $650 million per annum between 1999 and 2007; however, this amounted to less than 23 percent of GDP.[38] There was a slight surplus in 2008 with revenues totalling $23.16 billion and expenditures $22.93 billion.[39] Government expenditure equalled 38 percent of GDP.[citation needed] As of January 2011, the total national debt of Slovenia was unknown. The Statistical Office of the Republic of Slovenia (SURS) reported it to be (not counting state-guaranteed loans) 19.5 billion euros or 54.2% of GDP at the end of September 2010. According to the data provided by the Slovenian Ministry of Finance in January 2011, it was just below 15 billion euros or 41.6% of the 2009 GDP. However, the Slovenian financial newspaper Finance calculated in January 2011 that it was actually 22.4 billion euros or almost 63% of GDP, surpassing the limit of 60% allowed by the European Union.[40][41] On 12 January 2011, the Slovenian Court of Audit rejected the data reported by the ministry as incorrect and demanded the dismissal of the finance minister Franc Križanič.[42]

Slovenia's traditional anti-inflation policy relied heavily on capital inflow restrictions. Its privatization process favoured insider purchasers and prescribed a long lag time on share trading, complicated by a cultural wariness of being "bought up" by foreigners. As such, Slovenia has had a number of impediments to foreign participation in its economy. Slovenia has garnered some notable foreign investments, including the investment of $125 million by Goodyear in 1997. At the end of 2008, there was around $11.5 billion of foreign capital in Slovenia. Slovenians had invested $7.5 billion abroad. As of 31 December 2007, the value of shares listed on the Ljubljana Stock Exchange was $29 billion.

Investments from neighboring Croatia have begun in Slovenia. On 1 July 2010, Droga Kolinska was purchased by the Atlantic Group of Croatia for 382 million euros. Mercator was sold to Croatia's Agrocor in June 2014.[43]

At the end of the year 2014, there were 10 billion[clarification needed] foreign direct investment in Slovenia, 13.9% more than at the end of the year 2013. In 2013 (latest published data) direct foreign investments accounted for 24.7% of the GDP of Slovenia. The most important investor countries are Austria (33.6%), Switzerland (11.3%), Germany (10.4%), Italy (7.9%), and Croatia (7.7%).[44]

The following table shows the main economic indicators from 1993–2019.[45]

Year GDP

(in bil. US$ PPP)

GDP

(in bil. EUR PPP)

GDP per capita

(in EUR PPP)

GDP

(in bil. US$ nominal)

GDP growth (real) Inflation (in Percent) Unemployment rate Government debt (in % of GDP)
1993 23.5 7.8 3,908 16.6 2.8 % 31.9 % 8.6 % ...
1995 26.9 10.6 8,311 21.4 4.1 % 13.7 % 7.0 % 18.2 %
2000 35.8 18.9 11,076 20.4 3.7 % 8.9 % 6.7 % 25.9 %
2005 47.8 29.1 14,551 36.3 3.8 % 2.5 % 6.5 % 26.4 %
2006 52.2 31.5 15,676 39.5 5.7 % 2.5 % 6.0 % 26.1 %
2007 57.3 35.1 17,373 48.1 7.0 % 3.7 % 4.9 % 22.8 %
2008 60.5 37.9 18,757 55.8 3.5 % 5.7 % 4.4 % 21.8 %
2009 56.2 36.3 17,758 50.5 −7.5 % 0.8 % 5.1 % 34.5 %
2010 57.7 36.4 17,749 48.2 1.3 % 1.8 % 5.4 % 38.3 %
2011 59.4 37.1 18,052 51.6 0.9 % 1.8 % 7.1 % 46.5 %
2012 59.7 36.3 17,626 46.6 −2.6 % 2.6 % 8.5 % 53.6 %
2013 61.7 36.5 17,700 48.4 −1.0 % 1.8 % 11.1 % 70 %
2014 63.7 37.6 18,253 50.0 2.8 % 0.2 % 10.8 % 80.3 %
2015 65.3 38.9 18,830 43.1 2.2 % −0.5 % 9.8 % 82.6 %
2016 70.1 40.4 19,589 44.8 3.2 % −0.1 % 8.9 % 78.5 %
2017 75.8 43.0 20,820 48.6 4.8 % 1.4 % 7.8 % 74.1 %
2018 81.1 45.9 22,136 54.2 4.4 % 1.7 % 5.9 % 70.3 %
2019 85.4 48.4 23,167 54.4 3.3 % 1.6 % 4.8 % 65.6 %

Companies

[edit]

In 2022, the sector with the highest number of companies registered in Slovenia is Services with 60,260 companies followed by Wholesale Trade and Construction with 9,980 and 9,010 companies respectively.[46]

See also

[edit]

References

[edit]
  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Population, Slovenia, 1 April 2021". stat.si. Statistical Office of the Republic of Slovenia. 29 July 2021. Retrieved 23 October 2021.
  4. ^ a b c d e f g "Report for Selected Countries and Subjects: April 2024". imf.org. International Monetary Fund.
  5. ^ a b c d e f g h "CIA World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 11 January 2019.
  6. ^ "Income, Poverty and Social Exclusion". stat.si. SURS. Retrieved 19 June 2020.
  7. ^ "People at risk of poverty or social exclusion". ec.europa.eu. Eurostat. Retrieved 15 April 2024.
  8. ^ "Gini coefficient of equivalised disposable income - EU-SILC survey". ec.europa.eu/eurostat. Eurostat. Retrieved 5 June 2024.
  9. ^ a b "Human Development Report 2023/2024" (PDF). United Nations Development Programme. 13 March 2024. Archived (PDF) from the original on 13 March 2024. Retrieved 1 May 2024.
  10. ^ "Labor force, total - Slovenia". data.worldbank.org. World Bank. Retrieved 1 November 2019.
  11. ^ "Employment rate by sex, age group 20-64". ec.europa.eu/eurostat. Eurostat. Retrieved 20 July 2024.
  12. ^ "Unemployment by sex and age - monthly average". appsso.eurostat.ec.europa.eu. Eurostat. Retrieved 4 October 2020.
  13. ^ "Unemployment rate by age group". data.oecd.org. OECD. Retrieved 8 September 2020.
  14. ^ a b "Aktivno prebivalsto". Statistical Office of the Republic of Slovenia, Slovenia. 18 November 2014. Demographic. Archived from the original on 12 December 2014.
  15. ^ a b c d "Exports and imports of goods, December 2022". stat.si. Retrieved 10 October 2020.
  16. ^ a b c d e f "Euro area and EU27 government deficit both at 0.6% of GDP" (PDF). ec.europa.eu/eurostat. Eurostat. Retrieved 28 April 2020.
  17. ^ "Archived copy" (PDF). Archived (PDF) from the original on 25 December 2017. Retrieved 25 December 2017.{{cite web}}: CS1 maint: archived copy as title (link)
  18. ^ "Archived copy" (PDF). Archived (PDF) from the original on 20 April 2017. Retrieved 25 December 2017.{{cite web}}: CS1 maint: archived copy as title (link)
  19. ^ a b "Ministrstvo za finance". www.mf.gov.si.
  20. ^ "Scope affirms Slovenia at A with Stable Outlook". Scope Ratings. Retrieved 6 July 2024.
  21. ^ "An Analysis of the Economic System of Slovenia - Economic Activity". 20 May 2023. Retrieved 16 June 2024.
  22. ^ "Slovenia: Introduction". globaledge.msu.edu. Retrieved 16 June 2024.
  23. ^ https://ec.europa.eu/eurostat/databrowser/view/TEC00114/default/table?lang=en&category=prc.prc_ppp [bare URL]
  24. ^ "Bruto domači proizvod po regijah, Slovenija, 2015". www.stat.si.
  25. ^ a b c d "Osnovni gospodarski podatki o Sloveniji" [Basic Economic Data about Slovenia] (in Slovenian). Embassy of the Republic of Slovenia Vienna. Archived from the original on 18 June 2012. Retrieved 15 March 2012.
  26. ^ "SURS". www.stat.si.
  27. ^ "Background Note: Slovenia". Retrieved 4 May 2009.
  28. ^ "Slovenia Country Assessment". European Bank for Reconstruction and Development. Archived from the original on 20 February 2012. Retrieved 16 February 2012.
  29. ^ a b c "Double Dip Recession is the 'Slovenian' Reality". The Slovenia Times. 13 March 2012. Archived from the original on 8 February 2013. Retrieved 15 March 2012.
  30. ^ Cerni, Boris (29 February 2012). "Slovenia's Economy Falls Into a Recession as Exports Weaken". Bloomberg.
  31. ^ "Zdrs v recesijo so ekonomisti pričakovali" [The Slid into Recession Was Expected by Economists]. MMC RTV Slovenija (in Slovenian). RTV Slovenija. 29 February 2012. ISSN 1581-372X.
  32. ^ "SURS". www.stat.si.
  33. ^ "Bruto domači proizvod, Slovenija, 2. četrtletje 2016". www.stat.si.
  34. ^ "Das slowenische Modell".
  35. ^ "FAOSTAT". www.fao.org.
  36. ^ Blacquière, Tjeerd; Smagghe, Guy; van Gestel, Cornelis A. M.; Mommaerts, Veerle (18 February 2012). "Neonicotinoids in bees: a review on concentrations, side-effects and risk assessment". Ecotoxicology. 21 (4). Springer: 973–992. Bibcode:2012Ecotx..21..973B. doi:10.1007/s10646-012-0863-x. ISSN 0963-9292. PMC 3338325. PMID 22350105.
  37. ^ "Food First/Institute for Food and Development Policy | For Land, Liberty, Jobs and Justice". Archived from the original on 12 November 2004.
  38. ^ The Economist
  39. ^ "The World Factbook — Central Intelligence Agency". www.cia.gov. 22 September 2021.
  40. ^ Lipnik, Karel; Monika Weiss (14 January 2011). "Kolikšen je dejansko državni dolg Slovenije?". Finance. Časnik Finance.
  41. ^ "SURS: Vsi dolgovi države znašajo 22,43 milijarde evrov" [SURS: All the Debts of Slovenia Sum to 22.43 Billion Euros] (in Slovenian). MMC RTV Slovenia. 14 January 2011.
  42. ^ "Auditing Body Demands Dismissal of Finance Minister". Slovenian Press Agency. 12 January 2011. Archived from the original on 25 March 2012. Retrieved 15 January 2011.
  43. ^ Delo.si, Ma. G., gospodarstvo, Ti. K., Pi. K. (26 June 2014). "Mercator prodan Agrokorju".{{cite web}}: CS1 maint: multiple names: authors list (link)
  44. ^ "Tuje neposredne investicije - Ministrstvo za gospodarski razvoj in tehnologijo". www.mgrt.gov.si. Archived from the original on 12 June 2019. Retrieved 9 November 2016.
  45. ^ "Report for Selected Countries and Subjects". Retrieved 4 September 2018.
  46. ^ "Industry Breakdown of Companies in Slovenia". HitHorizons.
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