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Macroeconomic Overview


The core focus of Slovenia’s government is to continue building a modern and efficient economy by supporting innovation, increasing FDI inflows, raising export levels and driving up productivity. As a company’s production network expands, there are new destinations of investment to help extend its geographical reach and a structured, facts-based approach to pick the best available location for the optimisation of its product value chain. Investor weighing a country’s operating conditions and their impact on performance metrics such as lead times, total cost of ownership and the financial bottom line, will agree the skills of the local workforce make a major contribution to productivity and economic success.

With the challenging economic prospects over the next couple of years, Slovenia will continue to focus its resources where businesses and the economy as a whole should benefit most. Bundled with the measures aimed at meeting the commitments of the Euro Plus Pact designed to increase competitiveness, promote employment and have a positive effect on fiscal sustainability and stability, there are numerous government-sponsored programmes to improve the skills of employees, boost the capability of local suppliers and enhance Slovenia’s proposition to inward investors.


Macro-Stability of Slovene Economy

Source: Eurostat, 2016

According to Maastricht's criteria key elements in a macro-stability package are low inflation together with maintained price stability and a commitment to low budget deficit. Macro-stability cannot be divorced from unemployment as well. Consequently macro-stability is an effective means of achieving sustained economic growth. According to the statistics, Slovenia's main advantages in comparison to European Union are economic growth and investments in R&D, meanwhile the main disadvantage is account deficit as a per cent of GDP.

Main Economic Indicators

Indicators

2012

2013

2014

2015

 2016

forecast

  2017

forecast

2018

forecast

GDP (real growth rates, in %)

-2.7

-1.1

3.0

2.9

1.7

2.4

2.3

GDP in EUR million 

     35,988 

    35,907

    37,303

    38,543

    39,598

     40,613

     41,880

GDP per capita (PPS)*

21,500

21,500

22,600

-

-

-

-

GDP per capita, in EUR

17,498

17,435

18,093

18,680

 19,179

19,670

20,283

Trade balance, as % of GDP

2.6

5.6

7.0

7.3

7.5

6.8

6.3

Gross external debt in EUR million

42,872

41,658

46,314

44,723

 44,541

-

-

Gross external debt, as % of GDP

119.1

116.0

124.2

116.0

-

-

-

Standardised rate of unemployment (ILO)    

8.9

10.1

9.7

9.0

8.6

8.1

7.5

Labour productivity (% of GDP per employee)   

-1.8

0.3

2.5

1.4

0.8

1.5

1.7

Inflation, year average

2.6

1.8

0.2

-0.5

-0.3

1.3

1.3

Average exchange rate USD/EUR

1.286

1.328

1.329

1.110

1.111

1.114

1.114

* PPS - Purchasing Power Standard

Source: Institute of Macroeconomic Analysis and Development, 2016

Value Added in Slovenia


The global financial crisis has contributed to a significant slowdown of value added growth in manufacturing, retail trade and construction. Despite the sizeable decline in 2009, value added is increasing since then, but at a relatively slow pace.

The moderate growth of value added will also continue in 2016 and 2017. The main engine of growth will remain export-oriented manufacturing activities, but with a further increase in the export of services (particularly transport, travel and knowledge-intensive services) and a gradual strengthening of domestic private consumption, a significant contribution to value added growth will continue to be made by non-financial services.

Value added by activities; real growth rates in % (2017 forecast)

Value added by activities
Source: IMAD - Autumn forecast of economic trends 2015

Structure of gross value added, 2013 (as a % of total economy), international comparison

Value Added
Source: Eurostat, 2016

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