Economy of Slovenia

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Economy of Slovenia
Ljubljana made by Janez Kotar.jpg
CurrencyEuro (EUR, €)
1 January – 31 December
Trade organisations
EU, WTO, OECD
Country group
Statistics
PopulationIncrease 2,080,908 (1 January 2019)[3]
GDP
  • Increase $54.154 billion (nominal, 2019 est.)[4]
  • Increase $79.591 billion (PPP, 2019 est.)[4]
GDP rank
GDP growth
  • 4.8% (2017) 4.1% (2018)
  • 2.9% (2019e) 2.9% (2020e)[4]
GDP per capita
  • Increase $26,170 (nominal, 2019 est.)[4]
  • Increase $38,462 (PPP, 2019 est.)[4]
GDP per capita rank
GDP by sector
  • 1.9% (2020 est.)[4]
  • 1.8% (2019 est.)[4]
  • 1.7% (2018)[4]
Population below poverty line
  • Positive decrease 13.3% at risk of poverty (2018)[6]
  • Positive decrease 16.2% at risk of poverty or social exclusion (2018)[7]
Positive decrease 23.4 low (2018)[8]
Labour force
  • Decrease 1,007,949 (2019)[11]
  • Increase 75.4% employment rate (Target: 75%; 2018)[12]
Labour force by occupation
Unemployment
  • Negative increase 4.7% (January 2020)[13]
  • Positive decrease 8.9% youth unemployment (2018)[14]
Average gross salary
€1,752 / $1,995 monthly (March, 2019)
€1,128 / 1,285 monthly (March, 2019)
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 [15]
Increase 37th (very easy, 2020)[16]
External
ExportsIncrease €30.9 billion (2018)[17]
Export goods
manufactured goods, machinery and transport equipment, chemicals, food [15]
Main export partners
ImportsIncrease €30.6 billion (2018)[18]
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 70.4% of GDP (2018)[20]
0.8% (of GDP) (2018 est.)[20]
Revenues€20.02 billion (2018 est.)[20]
Expenses€19.92 billion (2018 est.)[20]
Foreign reserves
Increase $889.9 million (31 December 2017 est.)[5]
Main data source: CIA World Fact Book
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 developed and the country enjoys a high level of prosperity and stability as well as above average GDP per capita by purchasing power parity at 83% of the EU28 average in 2015.[23] Nominal GDP in 2018 is 42.534 billion EUR, nominal GDP per capita (GDP/pc) in 2018 is EUR 21,267. The highest GDP/pc is in central Slovenia, where the capital city Ljubljana is located, which is part of the Western Slovenia statistical region, which has a higher GDP/pc than eastern Slovenia.[24]

In January 2007 it became the first member to have both joined the European Union and adopted the euro since the currency's creation in 1999 and it has 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 crossroad.[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 severely hurt 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 are 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%, which was the biggest fall in the European Union after the Baltic countries and Finland.[citation needed] 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 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 on 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 year 2016 also domestic consumption, which has started to revive after the economic crisis. The GDP growth in 2015 was 2,3%,[21] in first half of 2016 2,5% and in 2nd quarter of 2016 2,7%.[33] It means that GDP growth is accelerating in 2016.

Trade[edit]

Slovenia's trade is orientated towards other EU countries, mainly Germany, Austria, Italy, and France. 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 GDP. As in most industrial economies, services make up an increasing share of output (57.1 percent), notably in financial services.

Economic performance[edit]

The traditional primary industries of agriculture, forestry, and fishing comprise 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%.[34]

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.[35] There was a slight surplus in 2008 with revenues totalling $23.16 billion and expenditures $22.93 billion.[36] 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 is actually 22.4 billion euros or almost 63% of GDP, surpassing the limit of 60% allowed by the European Union.[37][38] 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.[39]

Slovenia's traditional anti-inflation policy relied heavily on capital inflow restrictions. Its privatization process favoured insider purchasers and prescribed 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 Atlantic Group of Croatia for 382 million euros. Mercator was sold to Croatia's Agrocor in June 2014.[40]

At the end of year 2014 there were 10 billion of foreign direct investment in Slovenia, 13,9% more than at the end of year 2013. In 2013 (latest published data) direct foreign investments accounted for 24.7% of GDP of Slovenia. The most important investor countries are: Austria (33.6%), Switzerland (11.3%), Germany (10.4%), Italy (7.9%), Croatia (7.7%).[41]

The following table shows the main economic indicators in 1993–2017.[42]

Year 1993 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP in €
(PPP) 		7.78 Bln. 10.52 Bln. 18.90 Bln. 29.23 Bln. 31.56 Bln. 35.15 Bln. 37.95 Bln. 36.17 Bln. 36.25 Bln. 36.90 Bln. 36.08 Bln. 36.24 Bln. 37.62 Bln. 38.84 Bln. 40.42 Bln. 43.28 Bln.
GDP per capita in €
(PPP) 		3,908 5,289 9,509 14,630 15,751 17,486 18,879 17,795 17,710 17,997 17,551 17,601 18,250 18,826 19,581 20,949
GDP growth
(real) 		2.8 % 4.1 % 4.2 % 4.0 % 5.7 % 6.9 % 3.3 % −7.8 % 1.2 % 0.6 % −2.7 % −1.1 % 3.0 % 2.3 % 3.1 % 5.0 %
Inflation
(in Percent) 		31.9 % 13.7 % 8.9 % 2.5 % 2.5 % 3.7 % 5.7 % 0.8 % 1.8 % 1.8 % 2.6 % 1.8 % 0.2 % −0.5 % −0.1 % 1.4 %
Unemployment rate
(in Percent) 		8.6 % 7.0 % 6.7 % 6.5 % 6.0 % 4.9 % 4.4 % 5.9 % 7.3 % 8.2 % 8.9 % 10.1 % 9.7 % 9.0 % 8.0 % 6.8 %
Government debt
(Percentage of GDP) 		... 17 % 29 % 26 % 26 % 23 % 22 % 34 % 38 % 46 % 54 % 70 % 80 % 83 % 78 % 75 %

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 on 1 January". ec.europa.eu/eurostat. Eurostat. Retrieved 4 October 2019.
  4. ^ a b c d e f g h "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 16 October 2019.
  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 23 December 2019.
  7. ^ "People at risk of poverty or social exclusion". ec.europa.eu. Eurostat. Retrieved 27 April 2019.
  8. ^ "Gini coefficient of equivalised disposable income - EU-SILC survey". ec.europa.eu/eurostat. Eurostat. Retrieved 22 June 2019.
  9. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  10. ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  11. ^ "Labor force, total - Slovenia". data.worldbank.org. World Bank. Retrieved 1 November 2019.
  12. ^ "Employment rate by sex, age group 20-64". ec.europa.eu/eurostat. Eurostat. Retrieved 30 May 2019.
  13. ^ "Unemployment by sex and age - monthly average". appsso.eurostat.ec.europa.eu. Eurostat. Retrieved 5 March 2020.
  14. ^ "Youth unemployment rate by sex, age (15-24) and country of birth". appsso.eurostat.ec.europa.eu. Eurostat. Retrieved 26 December 2019.
  15. ^ a b "Aktivno prebivalsto". Statistical Office of the Republic of Slovenia, Slovenia. 18 November 2014. Demographic. Archived from the original on 12 December 2014.
  16. ^ "Ease of Doing Business in Slovenia". Doingbusiness.org. Retrieved 21 November 2017.
  17. ^ "Izvoz in uvoz blaga, Slovenija, december 2018". www.stat.si.
  18. ^ "Izvoz in uvoz blaga, Slovenija, december 2018". www.stat.si.
  19. ^ "IIzvoz in uvoz blaga, Slovenija, december 2018". www.stat.si.
  20. ^ a b c d "GDP and National Accounts". stat.si. SURS. Retrieved 24 December 2019.
  21. ^ a b "Ministrstvo za finance". www.mf.gov.si.
  22. ^ "Scope upgrades Slovenia's credit rating to A from A-, with a Stable Outlook". Scope Ratings. Retrieved 24 June 2019.
  23. ^ "Paritete kupne moči in bruto domači proizvod na prebivalca v standardih kupne moči, evropske države, 2013–2015". www.stat.si.
  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.
  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. ^ http://www.stat.si/statweb#graphBDP
  33. ^ "Bruto domači proizvod, Slovenija, 2. četrtletje 2016". www.stat.si.
  34. ^ Food First/Institute for Food and Development Policy | For Land, Liberty, Jobs and Justice Archived 12 November 2004 at the Wayback Machine
  35. ^ The Economist
  36. ^ "The World Factbook — Central Intelligence Agency". www.cia.gov.
  37. ^ Lipnik, Karel; Monika Weiss (14 January 2011). "Kolikšen je dejansko državni dolg Slovenije?". Finance. Časnik Finance.
  38. ^ "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.
  39. ^ "Auditing Body Demands Dismissal of Finance Minister". Slovenian Press Agency. 12 January 2011.
  40. ^ Delo.si, Ma. G., gospodarstvo, Ti. K., Pi. K. "Mercator prodan Agrokorju".
  41. ^ "Tuje neposredne investicije - Ministrstvo za gospodarski razvoj in tehnologijo". www.mgrt.gov.si.
  42. ^ "Report for Selected Countries and Subjects". Retrieved 4 September 2018.
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