Slovenia: Economic and Political Overview
In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline | COVID-19 Country Response
For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.
Slovenia has been an open market since its successful economic transition in the 2000s. As a member of the European Union since May 2004 and of the Eurozone since 2007, Slovenia is an advanced, independent, and stable country. After contracting due to the COVID-19 pandemic, Slovenia’s GDP rebounded in 2021 and continued its positive trend in 2022, when growth was estimated at 5.7% according to the IMF (5.1% as per the EU Commission figures), as private consumption continued to increase and investments proved robust. On the other hand, the trade balance in goods turned negative, with an export-import ratio of 93.2% (Statistics Slovenia). Global economic uncertainty and the tightening of financial conditions should hamper growth in 2023, with the IMF forecasting a GDP increase of 1.7%, while the EU Commission has a more conservative outlook (+1%). Investment is forecast to continue growing, sustained by EU RRF-supported public investments. For 2024, the IMF projects growth at 3%.
Strong revenue performance and some under-execution in spending helped reduce the budget deficit from 6% of GDP in 2021 to 3.9% last year. Around 2% of GDP has been budgeted in emergency measures for 2023 (mostly related to the rise in energy prices), with the government deficit projected at 3.2%. Conversely, the country’s debt-to-GDP ratio went down to 69.5% in 2022 (from 74.4% one year earlier) and is expected to follow a downward trend over the forecast horizon (at 66.7% this year and 63.6% in 2024 - IMF) supported by GDP growth. Sound debt management and long average maturities (10 years) significantly reduce financing risks (Fitch Ratings). Fuelled by the rise in energy prices and the consequent spill-over on industrial goods, food and services, inflation spiked in 2022 reaching 8.9%. With global energy prices easing and growth remaining weak, headline inflation is projected to decrease to 5.1% in 2023 and 3.3% the following year, closer to the European Central Bank’s target.
Unemployment has been on a declining trend in recent years: it was estimated at 4.3% in 2022 and should remain stable in the upcoming future. The EU Commission expects wage growth to be robust in 2023, partly compensating for the increased cost of living. According to the latest data from Eurostat, 13.2% of the population is at risk of poverty or social exclusion, the second-lowest ratio in the EU. Nevertheless, poverty amongst the senior population, consisting of mostly women and marginalized minorities, is an area of severe concern; to address this, the government deployed a specific strategy for elder people. Overall, the IMF estimated the country’s GDP per capita (PPP) at USD 49,968 in 2022.
| Main Indicators | 2020 | 2021 | 2022 (E) | 2023 (E) | 2024 (E) |
|---|---|---|---|---|---|
| GDP (billions USD) | 53.66 | 61.79 | 62.17 | 68.11 | 72.12 |
| GDP (Constant Prices, Annual % Change) | -4.3 | 8.2 | 5.4 | 1.6 | 2.1 |
| GDP per Capita (USD) | 25,605 | 29,298 | 29,502 | 32,215 | 34,089 |
| General Government Balance (in % of GDP) | -6.3 | -5.4 | -4.5 | -4.3 | -2.5 |
| General Government Gross Debt (in % of GDP) | 79.6 | 74.5 | 70.2 | 67.7 | 65.9 |
| Inflation Rate (%) | -0.1 | 1.9 | 8.8 | 6.4 | 4.5 |
| Unemployment Rate (% of the Labour Force) | 5.0 | 4.7 | 4.0 | 3.9 | 4.0 |
| Current Account (billions USD) | 4.05 | 2.35 | -0.26 | 0.23 | 0.54 |
| Current Account (in % of GDP) | 7.6 | 3.8 | -0.4 | 0.3 | 0.8 |
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
Slovenia has a skilled and productive labour force of around 1 million people out of its 2.1 million population. The agricultural sector is declining and accounts for only 1.7% of the GDP, employing around 4% of the population (World Bank, latest data available). The country counts 68,331 agricultural holdings, the total utilized agricultural area equates to 30.6% of the total area, with 5.5% of agricultural holdings dedicated to organic production. Forestry is a key economic factor, with 66% of the land area forested and an annual production value of EUR 250 million to the economy. According to the latest figures by the Slovenian Statistical Office, the value of the agricultural output in 2022 was estimated at EUR 1,670 million, showing a year-on-year increase of 1% in volume terms and 20% in price terms. The value of crop production was 15% higher than in 2021: although production was 1% lower, prices increased by 16%.
The industrial sector represents 28.5% of GDP and one-third of employment (34%). Historically, the dominant industries in Slovenia have been the forestry, textile, and metallurgical industries. Since the 1980s, the mechanical industries (automobile, tool machines) and the high-value-added industries (electronics, pharmacy, and chemicals) have been greatly developed. The World Bank estimates the manufacturing sector to contribute 20% of GDP. Slovenia's industrial production expanded by 1.7% in 2022, following a 10.2% rise in the previous year (Slovenian Statistical Office).
The tertiary remains the most significant sector in the Slovenian economy. It represents 57.7% of the GDP and employs 62% of the total workforce, and has shown a strong growth pattern during the last ten years, especially in the fields of information and communications technology (ITC), financial, commercial services, and retail business. The tourism sector is very dynamic and has been undergoing a period of strong development in recent years. After suffering due to the COVID-19 pandemic, the sector recovered in 2022 when Slovenia was visited by around 5.9 million tourists, who generated almost 15.6 million overnight stays, 27.5% more than the previous year, of which about 65% were from foreign tourists. According to the latest figures from the European Banking Federation, the Slovenian banking sector comprises 11 commercial banks, three savings banks and two branches of foreign banks.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
|---|---|---|---|
| Employment By Sector (in % of Total Employment) | 4.3 | 34.1 | 61.6 |
| Value Added (in % of GDP) | 1.7 | 28.5 | 57.7 |
| Value Added (Annual % Change) | -9.9 | 9.4 | 7.1 |
Source: World Bank - Latest available data.
Find more information about your business sector on our service Market Reports.
| Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Euro (EUR) - Average Annual Exchange Rate For 1 MUR | 0.03 | 0.03 | 0.02 | 0.03 | 0.02 |
Source: World Bank - Latest available data.
Find out all the exchange rates daily on our service Currency Converter.
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, labour 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.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
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.
Source: The Economist Intelligence Unit - Business Environment Rankings 2020-2024
See the country risk analysis provided by Coface.
Slovenia is highly open to foreign trade, which represents about 161% of the country's GDP (World Bank, latest data available). This high level of openness makes Slovenia very dependent on the economic health of its main commercial partners: Slovenia is integrated within German and Austrian production chains for automobiles and electrical and electronic equipment, and in Swiss chains for the pharmaceuticals industry, and generates more than half of its goods exports from these four sectors. The largest share of total trade in 2022 was contributed from chemicals and related products (34.0% of exports and 31.9% of imports), followed by machinery and transport equipment (26.7% of exports and 22.7% of imports), manufactured goods classified chiefly by material (16.4% of exports and 14.5% of imports), miscellaneous manufactured articles (about 8.2% of exports and 7.0% of imports), and mineral fuels, lubricants and related materials (8.0% of exports and 13.8% of imports – data Statistics Slovenia).
Data from Statistics Slovenia show that in 2022 the main export destinations were Switzerland (21% of total exports), followed by Germany (14.4%), Italy (10.6%), Croatia (8.4%), Austria (6.7%) and France (3.3%); whereas imports came chiefly from Switzerland (14.6% of total imports), followed by Germany (12.5%), Italy (11.5%), China (8.9%), Austria (8.4%) and Croatia (5%). Slovenia has an external trade deficit with EU member states that has been decreasing in recent years. On the other hand, the country has had an external trade surplus with EU non-member countries.
Slovenia’s trade balance is structurally positive: in 2021 the trade surplus stood at 6.3%of GDP (from 9.2% one year earlier), according to the World Bank. Both exports and imports of goods increased during the year: exports stood at USD 57.3 billion (+28% y-o-y), while imports grew at a faster pace totalling USD 57.5 billion (+36.6%), slightly above exports. The country is a net exporter of services, with exports totalling USD 9.7 billion and imports at USD 6.9 billion (+24.6% and +27.6%, respectively). According to the latest figures from the Slovenian statistical office, in 2022 exports amounted to EUR 52.9 billion and imports to EUR 56.8 billion, growing by 34.2% and 36.6% respectively, marking the second year in a row in which Slovenia recorded a deficit in merchandise trade.
| Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Imports of Goods (million USD) | 36,078 | 42,267 | 44,007 | 42,120 | 57,560 |
| Exports of Goods (million USD) | 38,443 | 44,200 | 44,943 | 44,797 | 57,352 |
| Imports of Services (million USD) | 5,055 | 6,364 | 6,359 | 5,492 | 6,930 |
| Exports of Services (million USD) | 8,184 | 9,559 | 9,554 | 7,831 | 9,763 |
| Imports of Goods and Services (Annual % Change) | 10.7 | 7.1 | 4.7 | -9.6 | 17.6 |
| Exports of Goods and Services (Annual % Change) | 11.1 | 6.2 | 4.5 | -8.6 | 14.5 |
| Imports of Goods and Services (in % of GDP) | 74.1 | 76.3 | 75.1 | 68.5 | 77.3 |
| Exports of Goods and Services (in % of GDP) | 83.1 | 84.8 | 83.7 | 77.7 | 83.6 |
| Trade Balance (million USD) | 1,830 | 1,511 | 1,456 | 2,665 | 1,072 |
| Trade Balance (Including Service) (million USD) | 4,385 | 4,599 | 4,707 | 5,019 | 3,969 |
| Foreign Trade (in % of GDP) | 157.3 | 161.1 | 158.8 | 146.2 | 160.9 |
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
| Main Customers (% of Exports) |
2022 |
|---|---|
| Switzerland | 21.0% |
| Germany | 14.5% |
| Italy | 10.6% |
| Croatia | 8.4% |
| Austria | 6.7% |
| See More Countries | 38.8% |
| Main Suppliers (% of Imports) |
2022 |
|---|---|
| Switzerland | 15.3% |
| China | 11.9% |
| Germany | 10.5% |
| Italy | 10.5% |
| Austria | 6.7% |
| See More Countries | 45.1% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows.
Source: United Nations Statistics Division, Latest Available Data
- Slovenian Democratic Party (SDS): centre-right, party to the ruling coalition government
- List of Marjan Sarec (LMS): social-liberal, populist, primary opposition party
- Social Democrats (SD): centre-left
- The Left (Levica): eco-socialist
- New Slovenia (NSi): centre-right, pro-European
- Party of Alenka Bratušek (SAB): centre, social liberism
- Concretely: liberal, centrist
- Democratic Party of Slovenian Pensioners (DeSUS): centrist, party to the ruling coalition government
- Slovanian National Party (SNS): slovenian nationalism.
The 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 Prime Minister cannot dissolve the parliament, only the president can do it in certain circumstances.
The world rankings, published annually, measures 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 incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. 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.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
To find out about the latest public health situation in Slovenia and the current sanitary measures in vigour, please consult the dedicated page on the official portal of the government of Slovenia, including the up-to-date information on the containment measures put in place and public health recommendations. Further information can be accessed on the website of the National Institute of Public Health (NIJZ) and on the official website Slovenia.info.
Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The UK Foreign travel advice also provides comprehensive travelling abroad advice for all countries, including the latest information on health, safety, security, entry requirements and travel warnings.
To know about the economic measures taken by the Slovenian government to address the impact of the COVID-19 pandemic on the national economy, please visit the dedicated page on the official portal of the government of Slovenia. Further info can be found on the websites of the Slovene Enterprise Fund (in Slovenian) and of the Ministry of Economy (in Slovenian). Updates are available on the “News” section of the government’s portal. For an overview of the measures, consult the guide by Deloitte.
The information on the EU’s economic response to COVID-19 and the actions to minimise the fallout on the EU member states’ economies of the COVID-19 outbreak is available on the websites of the European Commission and the European Council.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) taken by the Slovenian government to limit the socio-economic impact of the COVID-19 pandemic, please consult the section dedicated to Slovenia in the IMF’s Policy Tracker platform.
For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.
Any Comment About This Content? Report It to Us.
© eexpand, All Rights Reserved.
Latest Update: September 2023
