![Slo world GNI percapita](https://upload.wikimedia.org/wikipedia/commons/d/d4/Slo_world_GNI_percapita.PNG)
The economy of Slovenia is a
developed economy, and the country enjoys a high level of prosperity and stability as well as above-average
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
per capita by purchasing power parity at 83% of the
EU28
The most recent enlargement of the European Union saw Croatia become the European Union's 28th member state on 1 July 2013. The country applied for EU membership in 2003, and the Europ ...
average in 2015. Nominal GDP in 2022 is 62.191 billion USD, nominal GDP per capita (GDP/pc) in 2022 is USD 29,469. The highest GDP/pc is in central
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
, where the capital city
Ljubljana
Ljubljana (also known by other historical names) is the capital and largest city of Slovenia. It is the country's cultural, educational, economic, political and administrative center.
During antiquity, a Roman city called Emona stood in the are ...
is located. It is part of the
Western Slovenia statistical region, which has a higher GDP/pc than eastern Slovenia.
In January 2007, Slovenia became the first member to have both joined the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
and adopted the
euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
since the currency's creation in 1999. It has also been a member of the
Organisation for Economic Co-operation and Development since 2010.
Slovenia has a highly educated workforce, well-developed infrastructure, and is situated at a major transport crossroad.
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
The European debt crisis, often also referred to as the eurozone crisis or the European sovereign debt crisis, is a multi-year debt crisis that took place in the European Union (EU) from 2009 until the mid to late 2010s. Several eurozone memb ...
, which occurred in the late 2000s.
After 2013, GDP per capita began rising again. Almost two-thirds of the working population are employed in services.
History
Although it comprised only about one-eleventh of
Yugoslavia
Yugoslavia (; sh-Latn-Cyrl, separator=" / ", Jugoslavija, Југославија ; sl, Jugoslavija ; mk, Југославија ;; rup, Iugoslavia; hu, Jugoszlávia; rue, label=Pannonian Rusyn, Югославия, translit=Juhoslavija ...
'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.
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
The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation
in the United Nations System, governments use the organization to establish, revise, and ...
, joined
CEFTA in 1996, and joined the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
on 1 May 2004. In June 2004 it joined the
European Exchange Rate Mechanism
The European Exchange Rate Mechanism (ERM II) is a system introduced by the European Economic Community on 1 January 1999 alongside the introduction of a single currency, the euro (replacing ERM 1 and the euro's predecessor, the ECU) as ...
. The
euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
was introduced at the beginning of 2007 and circulated alongside the
tolar
Tolar (german: Thaler, links=no) or Jáchymovský tolar is the Czech name for the silver coin minted in Kingdom of Bohemia from 1520 until 1672 in Jáchymov (German: ''Joachimsthal''). On obverse of the coin is depicted Saint Joachim with coat ...
until 14 January 2007. Slovenia also participates in SECI (
Southeast European Cooperation Initiative
The Southeast European Cooperative Initiative (SECI) is a multilateral regional initiative that has been initiated by the European Union, the United States of America and the countries of Southeast Europe within the framework of the Organization ...
), as well as in the
Central European Initiative, the
Royaumont Process, and the
Black Sea Economic Council
The Organization of the Black Sea Economic Cooperation (BSEC) is a regional international organization focusing on multilateral political and economic initiatives aimed at fostering cooperation, peace, stability and prosperity in the Black Sea ...
.
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, the economy of Slovenia again slid into recession in the last quarter of 2011.
This has been attributed to the fall in domestic consumption and the slowdown in the growth of exports.
Slovenia mainly exports to countries of the
eurozone
The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro ( €) as their primary currency and sole legal tender, and have thus fully implemented EMU polici ...
.
The reasons for the decrease in domestic consumption have been multiple: fiscal
austerity, the freeze on budget expenditure in the final months of 2011,
a failure in the efforts to implement
economic reforms, inappropriate financing, and the decrease in exports.
In addition the construction industry was severely hit in 2010 and 2011.
From 2014 onwards GDP of Slovenia is rising again. The main factors of GDP growth are export and in the year 2016 also domestic consumption, which has started to revive after the economic crisis. The GDP growth in 2015 was 2,3%,
in the first half of 2016 2,5% and in the 2nd quarter of 2016 2,7%. It means that GDP growth is accelerating 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 health care systems in the world, and education is free up to postgraduate level.
Trade
Slovenia's trade is orientated towards other EU countries, mainly
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
and
Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
. 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
An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...
and
imports
An import is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade.
In international trade, the importation and exportation of goods are limited ...
combined). 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.
Agriculture
Slovenia produced in 2018:
* of
maize
Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. The ...
;
* of
grape
A grape is a fruit, botanically a berry, of the deciduous woody vines of the flowering plant genus '' Vitis''. Grapes are a non- climacteric type of fruit, generally occurring in clusters.
The cultivation of grapes began perhaps 8,000 years a ...
;
* of
wheat
Wheat is a grass widely cultivated for its seed, a cereal grain that is a worldwide staple food. The many species of wheat together make up the genus ''Triticum'' ; the most widely grown is common wheat (''T. aestivum''). The archaeologi ...
;
* of
barley
Barley (''Hordeum vulgare''), a member of the grass family, is a major cereal grain grown in temperate climates globally. It was one of the first cultivated grains, particularly in Eurasia as early as 10,000 years ago. Globally 70% of barley p ...
;
* of
apple
An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple trees are cultivated worldwide and are the most widely grown species in the genus ''Malus''. The tree originated in Central Asia, where its wild ancestor, ' ...
;
* of
potato
The potato is a starchy food, a tuber of the plant ''Solanum tuberosum'' and is a root vegetable native to the Americas. The plant is a perennial in the nightshade family Solanaceae.
Wild potato species can be found from the southern Unit ...
;
In addition to smaller productions of other agricultural products.
Neonicotinoid
Neonicotinoids (sometimes shortened to neonics ) are a class of neuro-active insecticides chemically similar to nicotine, developed by scientists at Shell and Bayer in the 1980s.
The neonicotinoid family includes acetamiprid, clothianidin, din ...
s are commonly used as they are throughout the world, including the use of
thiacloprid
Thiacloprid is an insecticide of the neonicotinoid class. Its mechanism of action is similar to other neonicotinoids and involves disruption of the insect's nervous system by stimulating nicotinic acetylcholine receptors. Thiacloprid was develop ...
in the country's
apple orchards. Smodiš Škerl et al 2009 find thiacloprid/apple
application practices leave a
residue
Residue may refer to:
Chemistry and biology
* An amino acid, within a peptide chain
* Crop residue, materials left after agricultural processes
* Pesticide residue, refers to the pesticides that may remain on or in food after they are applied ...
in the
pollen but not in
bee bread.
Economic performance
The traditional primary industries of
agriculture
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...
,
forestry
Forestry is the science and craft of creating, managing, planting, using, conserving and repairing forests, woodlands, and associated resources for human and environmental benefits. Forestry is practiced in plantations and natural stands. ...
, and
fishing
Fishing is the activity of trying to catch fish. Fish are often caught as wildlife from the natural environment, but may also be caught from stocked bodies of water such as ponds, canals, park wetlands and reservoirs. Fishing techniques inclu ...
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
Alpe-Adria is a bioregion in Central Europe, embracing all of Slovenia, the Austrian states of Carinthia and Styria, and the Italian regions of Friuli-Venezia-Giulia and Veneto. , it is the subject of a proposal to create the world's first organic ...
bioregion
A bioregion is an ecologically and geographically defined area that is smaller than a biogeographic realm, but larger than an ecoregion or an ecosystem, in the World Wide Fund for Nature classification scheme. There is also an attempt to use the ...
, which is currently involved in a major initiative in
organic farming
Organic farming, also known as ecological farming or biological farming,Labelling, article 30 o''Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic production and labelling of organic products and re ...
. 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%.
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. There was a slight surplus in 2008 with revenues totalling $23.16 billion and expenditures $22.93 billion.
Government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is ...
expenditure equalled 38 percent of GDP. , the total
national debt of Slovenia was unknown. The
Statistical Office of the Republic of Slovenia
The Statistical Office of the Republic of Slovenia (SURS) ( Slovene: ''Statistični urad Republike Slovenije'', ''SURS'') is an independent Slovenian state institution in charge of official statistical surveying. It reports directly to the prime mi ...
(SURS) reported it to be (not counting state-guaranteed loans) 19.5 billion euros or 54.2% of
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
at the end of September 2010. According to the data provided by the Slovenian
Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
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
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
. On 12 January 2011, the Slovenian
Court of Audit A Court of Audit or Court of Accounts is a Supreme audit institution, i.e. a government institution performing financial and/or legal audit (i.e. Statutory audit or External audit) on the executive branch of power.
See also
*Most of those in ...
rejected the data reported by the ministry as incorrect and demanded the dismissal of the finance minister
Franc Križanič.
Slovenia's traditional anti-
inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
policy relied heavily on capital inflow restrictions. Its
privatization
Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
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
Ljubljana Stock Exchange or LJSE ( sl, Ljubljanska borza ) is a stock exchange located in Ljubljana, Slovenia. It is Slovenia's only stock exchange. The exchange trades shares of Slovenian companies, as well as bonds and commercial papers. The on ...
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.
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
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
(33.6%),
Switzerland (11.3%),
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
(10.4%),
Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
(7.9%),
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = "Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capit ...
(7.7%).
The following table shows the main economic indicators in 1993–2017.
See also
*
List of banks in Slovenia
This is a list of banks in Slovenia, correct as of 18 October 2022.
Central bank
*Banka Slovenije
Commercial and retail banks
Savings banks
*Hranilnica LON d.d., Kran- national identification number: 60, BIC: HLON SI 22
*Delavska hranilnica ...
*
List of companies of Slovenia
Slovenia is a nation state in southern Central Europe, located at the crossroads of main European cultural and trade routes. The economy of Slovenia is small, open, and export-oriented and has been strongly influenced by international conditions ...
References
{{DEFAULTSORT:Economy Of Slovenia
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...