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flag Slovenia Slovenia: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Due to its stability and its accession to the EU in May 2004, the Slovenian economy has been showing good results for several years. Slovenia benefits from a qualified and productive workforce and its unemployment rate is one of the lowest in Europe. However, the steady increase in prices, which has not stopped since the Euro was established in January 2007, has had its negative effects in domestic consumption. The government had to adopt a stimulus economic active plan providing measures for job support, reinforcing credit access and financing public infrastructures.

The global financial crisis has affected Slovenia, especially in the field of foreign trade. As a fact, foreign demand, mainly  from Germany, has been strongly contracted. The banking sector was not spared, even though it was not exposed directly to the risk of toxic assets. Slovenia has adopted a severe budget for 2010 and 2011 involving a reduction of the deficit and public expenditures, freezing salaries and a retirement reform. The IMF predicts a growth of 2.4% in 2011.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 49.1647.73e52.4354.4156.63
GDP (Constant Prices, Annual % Change) -8.11.2e1.9e2.02.4
GDP per Capita (USD) 24,39023,64825,939e26,90527,989
General Government Balance (in % of GDP) -4.4-3.9e-3.6e-3.6-3.1
General Government Gross Debt (in % of GDP) 35.537.3e43.6e47.249.2
Inflation Rate (%) 0.91.8e1.8e2.12.3
Unemployment Rate (% of the Labor Force) 5.97.38.28.07.6
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

Main Sectors of Industry

During the last few years, agriculture has declined considerably reaching only 2.5% of  the GDP (in relation 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. After the 1980's, 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, tourism and retail business. 

 
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.

 
 
Monetary Indicators 20022003200420052006
Euro (EUR) - Average Annual Exchange Rate For 1 USD 240.25207.11192.38192.71191.03

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Slovenia on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
64.6/100
Position:
Moderately free
World Rank:
61/179
Regional Rank:
27/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Slovenia is a founding member of WTO. It is highly open to foreign trade especially with the EU which represents about two thirds of its trade. The share of foreign trade is more than 100% of its GDP. Its three main clients are Germany, Italy and Croatia. Slovenia's main exports are vehicles, machinery, electric & electronic equipment, furniture and pharmaceutical products. 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. It is especially the case in the context of the global economic crisis. Due to the drop in global demand, Sloven exports have decreased and the deficit of the trade balance was deteriorated, which dropped to almost 6% of the GDP.

Foreign trade in Slovenia is structurally in deficit with Western Europe where its main partners are located.  Some exports have resisted well 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, starting in 2011.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 24,14131,55937,03426,50729,998
Exports of Goods (million USD) 23,23030,10234,12826,17729,423
Imports of Services (million USD) 3,2054,1965,0854,3014,206
Exports of Services (million USD) 4,4745,6667,3765,9645,713
Imports of Goods and Services (Annual % Change) 12.216.32.9--
Exports of Goods and Services (Annual % Change) 12.513.72.9--
Imports of Goods and Services (in % of GDP) 67.071.370.456.6-
Exports of Goods and Services (in % of GDP) 66.569.567.458.1-
Trade Balance (million USD) -1,458-2,314-3,881-996-1,602
Trade Balance (Including Service) (million USD) -368-887-1,775626128
Foreign Trade (in % of GDP) 133.6140.8137.8114.7-

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

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 19.8%
Italy 12.2%
Austria 8.2%
France 8.1%
Croatia 6.7%
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%
See More Countries 49.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
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) 10.4%
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) 8.1%
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. 2.5%
Electrical energyElectrical energy 2.2%
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 2.0%
See More Products 74.9%
Main Imports
(% of Imports)
2010
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 8.8%
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) 4.9%
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. 3.4%
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) 2.9%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 2.0%
See More Products 78.1%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen 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 Euroscepticism;
- SLS (Slovenian People's Party) – a centre-right more rural political party;
Current Political Leaders
President: Danilo TURK (since December 2007)
Prime Minister: Borut PAHOR (since November 2008) – SD, heading a coalition with LDS, Zares and DeSUS
Next Election Dates
Presidential: Fall of 2012
National Assembly: Fall of 2012
 

Indicator of Freedom of the Press

World Rank:
46/178
Evolution:
8 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012