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||2011||2012||2013||2014||2015 (e)|
|GDP (billions USD)||51.30||46.29||48.01||49.93e||50.71|
|GDP (Constant Prices, Annual % Change)||0.6||-2.6||-1.0||1.4e||1.4|
|GDP per Capita (USD)||25,022||22,519||23e||24,211e||24,550|
|General Government Balance (in % of GDP)||-3.6||-1.7||-1.6e||-2.3||-2.7|
|General Government Gross Debt (in % of GDP)||46.2||53.3||70.0||77.4e||75.6|
|Inflation Rate (%)||1.8||2.6||1.8e||0.5||1.0|
|Unemployment Rate (% of the Labor Force)||8.2||8.9||10.1||9.9||9.5|
|Current Account (billions USD)||0.27||1.64||3.25e||2.94||2.95|
|Current Account (in % of GDP)||0.5||3.5||6.8||5.9e||5.8|
Source: IMF - World Economic Outlook Database , Last Available Data
Note: (e) Estimated Data
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.
|Euro (EUR) - Average Annual Exchange Rate For 1 USD||0.72||0.76||0.72||0.78||0.76|
Source: CIA - The world factbook - Last Available Data.
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.
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.
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||2009||2010||2011||2012||2013|
|Imports of Goods (million USD)||26,507||30,093||35,527||32,035||33,412|
|Exports of Goods (million USD)||26,177||29,200||34,756||32,173||34,092|
|Imports of Services (million USD)||4,301||4,293||4,578||4,245||4,461|
|Exports of Services (million USD)||5,964||6,073||6,721||6,633||7,206|
|Imports of Goods and Services (Annual % Change)||-18.8||6.6||5.0||-3.9||1.4|
|Exports of Goods and Services (Annual % Change)||-16.6||10.1||7.0||0.3||2.6|
|Imports of Goods and Services (in % of GDP)||55.4||62.8||68.4||68.9||68.7|
|Exports of Goods and Services (in % of GDP)||57.2||64.3||70.4||73.2||74.7|
|Trade Balance (million USD)||-394||-867||-1,068||254||1,513|
|Trade Balance (Including Service) (million USD)||986||589||733||2,167||3,489|
|Foreign Trade (in % of GDP)||112.6||127.1||138.8||142.1||143.4|
Source: WTO - World Trade Organization ; World Bank , Last Available Data
(% of Exports)
|See More Countries||47.2%|
(% of Imports)
|See More Countries||49.3%|
Source: Comtrade, Last Available Data
|- 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
|- bn USD of services exported in 2011|
|Personal travelPersonal travel||38.59%|
|Education-related expenditureEducation-related expenditure||0.62%|
|Health-related expenditureHealth-related expenditure||0.48%|
|Business travelBusiness travel||1.74%|
|Expenditure by seasonal and...Expenditure by seasonal and border workers||0.12%|
|Road transportRoad transport||13.37%|
|Sea transportSea transport||4.70%|
|Air transportAir transport||4.18%|
|Rail transportRail transport||3.33%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||13.25%|
|Other business servicesOther business services||5.23%|
|Advertising, market research,...Advertising, market research, and public opinion polling||3.88%|
|Architectural, engineering,...Architectural, engineering, and other technical services||1.32%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||1.30%|
|Business and management...Business and management consulting and public relations services||0.87%|
|Legal servicesLegal services||0.22%|
|Accounting, auditing,...Accounting, auditing, bookkeeping, and tax consulting services||0.21%|
|Services between related...Services between related enterprises, n.i.e.||0.90%|
|Research and developmentResearch and development||0.56%|
|Agricultural, mining, and...Agricultural, mining, and on-site processing services||0.07%|
|Waste treatment and...Waste treatment and depollution||0.07%|
|Merchanting and other trade-related...Merchanting and other trade-related services||3.38%|
|Other trade-related servicesOther trade-related services||0.52%|
|Operational leasing servicesOperational leasing services||0.31%|
|Telecommunications servicesTelecommunications services||5.38%|
|Postal and courier servicesPostal and courier services||0.07%|
|Construction abroadConstruction abroad||3.13%|
|Construction in the compiling...Construction in the compiling economy||0.13%|
|Computer servicesComputer services||1.73%|
|Information servicesInformation services||0.55%|
|Other information provision...Other information provision services||0.55%|
|Auxiliary servicesAuxiliary services||0.41%|
|Life insurance and pension fundingLife insurance and pension funding||0.02%|
|Other direct insuranceOther direct insurance||0.02%|
|Franchises and similar rightsFranchises and similar rights||0.07%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.82%|
|Health servicesHealth services||0.48%|
|Education servicesEducation services||0.10%|
|Audiovisual and related servicesAudiovisual and related services||0.22%|
|Embassies and consulatesEmbassies and consulates||0.11%|
|- bn USD of services imported in 2011|
|Personal travelPersonal travel||19.28%|
|Education-related expenditureEducation-related expenditure||0.17%|
|Health-related expenditureHealth-related expenditure||0.03%|
|Business travelBusiness travel||4.77%|
|Expenditure by seasonal and...Expenditure by seasonal and border workers||0.33%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||21.14%|
|Advertising, market research,...Advertising, market research, and public opinion polling||8.91%|
|Other business servicesOther business services||4.49%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||2.83%|
|Business and management...Business and management consulting and public relations services||2.27%|
|Legal servicesLegal services||0.30%|
|Accounting, auditing,...Accounting, auditing, bookkeeping, and tax consulting services||0.26%|
|Architectural, engineering,...Architectural, engineering, and other technical services||1.74%|
|Services between related...Services between related enterprises, n.i.e.||1.54%|
|Research and developmentResearch and development||1.49%|
|Agricultural, mining, and...Agricultural, mining, and on-site processing services||0.14%|
|Waste treatment and...Waste treatment and depollution||0.14%|
|Merchanting and other trade-related...Merchanting and other trade-related services||1.54%|
|Other trade-related servicesOther trade-related services||1.54%|
|Operational leasing servicesOperational leasing services||0.86%|
|Road transportRoad transport||6.26%|
|Sea transportSea transport||5.39%|
|Air transportAir transport||4.61%|
|Rail transportRail transport||1.97%|
|Franchises and similar rightsFranchises and similar rights||0.27%|
|Telecommunications servicesTelecommunications services||8.14%|
|Postal and courier servicesPostal and courier services||0.15%|
|Computer servicesComputer services||3.05%|
|Information servicesInformation services||1.08%|
|Other information provision...Other information provision services||1.06%|
|News agency servicesNews agency services||0.02%|
|Auxiliary servicesAuxiliary services||0.85%|
|Other direct insuranceOther direct insurance||0.12%|
|Life insurance and pension fundingLife insurance and pension funding||0.12%|
|Freight insuranceFreight insurance||0.02%|
|Construction abroadConstruction abroad||1.54%|
|Construction in the compiling...Construction in the compiling economy||0.70%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.82%|
|Health servicesHealth services||0.39%|
|Education servicesEducation services||0.20%|
|Audiovisual and related servicesAudiovisual and related services||0.29%|
|Embassies and consulatesEmbassies and consulates||1.70%|
Source: Comtrade, Last Available Data
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.
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.).
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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