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flag Slovenia Slovenia: Economic and Political Outline

In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

 

Economic Indicators

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 neighbouring 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.

Slovenia came into recession in the second semester of 2011 and has seen an increase in the contraction of its activities in 2012 (-2,4%) which continued in 2013 (-2%). The forecast for 2014 is a growth at  -0.8%. Indeed several growth factors have been impacted : in the country by the strict debt reduction policies of public sector and private companies, and outside by the slow down of European activities. 2012 and 2013 have seen a contraction of investment and household consumption.

Unemployment has reached 10.3% in 2013 (after 11.6% in 2012), public debt too has increased, passed the 50% GDP mark in 2012 with 53.2% to reach 63.2% in 2013 (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 neighbours.

 
Main Indicators 20112012201320142015 (e)
GDP (billions USD) 51.3046.2948.0149.93e50.71
GDP (Constant Prices, Annual % Change) 0.6-2.6-1.01.4e1.4
GDP per Capita (USD) 25,02222,51923e24,211e24,550
General Government Balance (in % of GDP) -3.6-1.7-1.6e-2.3-2.7
General Government Gross Debt (in % of GDP) 46.253.370.077.4e75.6
Inflation Rate (%) 1.82.61.8e0.51.0
Unemployment Rate (% of the Labor Force) 8.28.910.19.99.5
Current Account (billions USD) 0.271.643.25e2.942.95
Current Account (in % of GDP) 0.53.56.85.9e5.8

Source: IMF - World Economic Outlook Database , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

During the last few years, agriculture has declined considerably. It has contributed only 2.8% to the GDP in 2013 (compared to 4.2% in 1995).

The industrial sector represents under a third of the GDP (28.9%). 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 and chemicals) have been greatly developed.

The Slovenian economy is becoming more and more based on services. This sector, which represented 68.3% of the GDP in 2013 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) 8.3 30.8 60.3
Value Added (in % of GDP) 2.1 32.0 65.8
Value Added (Annual % Change) -4.4 -1.5 0.0

Source: World Bank - Last Available Data.

 
 
 
Monetary Indicators 20092010201120122013
Euro (EUR) - Average Annual Exchange Rate For 1 USD 0.720.760.720.780.76

Source: CIA - The world factbook - Last Available Data.

 
 

Learn more about Market Analyses about Slovenia on Globaltrade.net, the Directory for International Trade Service Providers.

Indicator of Economic Freedom

Definition:

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.

Score:
62.7/100
Position:
Moderately Free
World Rank:
74/178
Regional Rank:
34/43

Distribution of Economic freedom in the world
Source: 2014 Index of Economic freedom, Heritage Foundation

 

Business environment ranking

Definition:

The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

Score:
6.84
World Rank:
33/82

Source: The Economist - Business Environment Rankings 2014-2018

 

Country Risk

See the country risk analysis provided by Coface.

 

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Foreign Trade in Figures

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. In 2013, the 27 EU countries have purchased over 70% of Slovenia export, especially vehicles, electric & electronic equipment and pharmaceutical products. Slovenian 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 the EU countries in 2011, Slovene exports have decreased. Nevertheless, due to a slowdown of importation the trade deficit has been reduced in 2013, export contributing positively to the country economic activities. Inflation remained within the euro zone average in 2013 with 2.3%

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) improve, the level of imports and exports should revive and increase again in 2014.

 
Foreign Trade Indicators 20092010201120122013
Imports of Goods (million USD) 26,50730,09335,52732,03533,412
Exports of Goods (million USD) 26,17729,20034,75632,17334,092
Imports of Services (million USD) 4,3014,2934,5784,2454,461
Exports of Services (million USD) 5,9646,0736,7216,6337,206
Imports of Goods and Services (Annual % Change) -18.86.65.0-3.91.4
Exports of Goods and Services (Annual % Change) -16.610.17.00.32.6
Imports of Goods and Services (in % of GDP) 55.462.868.468.968.7
Exports of Goods and Services (in % of GDP) 57.264.370.473.274.7
Trade Balance (million USD) -394-867-1,0682541,513
Trade Balance (Including Service) (million USD) 9865897332,1673,489
Foreign Trade (in % of GDP) 112.6127.1138.8142.1143.4

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2013
Germany 20.4%
Italy 11.6%
Austria 8.7%
Croatia 6.9%
France 5.3%
See More Countries 47.2%
Main Suppliers
(% of Imports)
2013
Germany 17.1%
Italy 15.3%
Austria 8.7%
China 5.0%
Croatia 4.6%
See More Countries 49.3%

Source: Comtrade, Last Available Data

 
 

Main Products

- bn USD of products exported in 2013
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses incl. those in the form of transdermal administration or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 9.5%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 7.2%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.1%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.7%
Electrical energyElectrical energy 2.4%
See More Products 74.1%
- bn USD of products imported in 2013
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 11.0%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.2%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses incl. those in the form of transdermal administration or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.2%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.1%
Electrical energyElectrical energy 1.8%
See More Products 76.8%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 
 
 

Main Services

- bn USD of services exported in 2011
40.33%
26.97%
16.95%
5.45%
3.26%
2.28%
1.63%
1.31%
1.05%
0.65%
0.14%
- bn USD of services imported in 2011
24.05%
23.54%
21.20%
9.08%
8.29%
4.13%
2.77%
2.24%
2.13%
1.46%
1.10%

Source: Comtrade, Last Available Data

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Sources of General Economic Information

Ministries
Ministry of Economic Affairs
Ministry of Finance
Statistical Office
Statistical Office
Central Bank
Bank of Slovenia
Stock Exchange
Ljubljana Stock Exchange
Search Engines
Leading search engine including maps, news, images and other services (in local language only)
Slovenia web directory, search engine and country information
Economic Portals
State Administration Portal on business issues
Slovenian Business Portal

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Political Outline

Executive Power
The President is the head of the state and is elected by a popular vote for a five-year term. The role of the President is largely ceremonial. Following parliamentary elections, the leader of the majority party or the leader of a majority coalition is usually nominated to become Prime Minister by the President and elected by the parliament to serve a four-year term.

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.

Legislative Power
The legislature is bicameral in Slovenia. The parliament consists of:

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.

Main Political Parties
Slovenia has a multi-party system and generally no single party has a chance of gaining power alone. Thus parties work with each other to form coalition governments. The major parties in the country are: 
- SD (Social Democrats) – a left-wing political party
- SDS (Slovenian Democratic Party) – a centre-right more urban party;
- Zares (New Politics) - a new political party established by some of the former LDS members
- LDS (Liberal Democracy of Slovenia ) – a centre-left liberal party;
- DeSUS (Democratic Party of Pensioners of Slovenia) – a party of retired persons;
- NSi (New Slovenia – Christian People's Party ) – a right-of-centre political party;
- SNS (Slovenian National Party) – known for its Xenophobia and Euro-scepticism;
- SLS (Slovenian People's Party) – a centre-right more rural political party;
Current Political Leaders
President: Borut PAHOR (since 22 December 2012) - Social Democrats
Prime Minister: Interim: Alenka BRATUSEK (since 5 March 2014) - Pozitivna Slovenija
Next Election Dates
Presidential: 2017
National Assembly: 2015
 

Indicator of Freedom of the Press

Definition:

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 are 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.).

World Rank:
34/180
Evolution:
1 place up compared to 2013

Source: Worldwide Press Freedom Index 2014, Reporters Without Borders

 

Indicator of Political Freedom

Definition:

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.

Ranking:
Free
Political Freedom:
1/7

Map of freedom 2014
Source: Freedom House

 

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Last Updates: October 2014