Economic Indicators

In 2016, the GDP growth rate of the Slovenian economy exceded expectations, reaching 2.3%. This builds on the upward trend since 2014, after five years of economic crisis. Starting in 2008, the country had faced social and financial difficulties, partly caused by its rapid integration into the European economy, its banking context (namely, the 2013 banking crisis) and recurring political instability. Slovenia now seems to be emerging from this period of recession. It is also seen as politically stable, under the centre-left Government of Miro Cerar since 2014. The growth forecast for 2017 is 1.8%. In fact, the drivers of the recovery are being launched: household consumption has stopped contracting and unemployment has been reduced to under 8%.

The upturn should facilitate the ongoing process of budgetary consolidation. However, public debt is projected to rise and has continued to increase in 2016 to an estimated 80% of GDP. The State had to absorb the bailout of the banking system, estimated at more than 10% of the GDP. It is important for Slovenia to improve its public finances in order to reassure the markets. As a member of the European Union since May 2004 and of the Eurozone since 2007, Slovenia with its population of only 2.1 million is an advanced, reliable and independent country. Slovenia has been an open market since its successful economic transition of the 2000's. It maintains a long tradition of trading with neighbouring countries, such as Germany, Austria and Italy, making it vulnerable to its neighbours’ economic health. Slovenia benefits from a skilled and productive labour force, with a relatively low unemployment rate by European standards. Slovenia was lauded for its calm management of the immense flux of migrants passing through the country, mostly towards Germany and Sweden. In line with its regional neighbours, Slovenia closed its borders in spring 2016, but has since accepted hundreds of asylum seekers under the EU plan.

Main Indicators	2014	2015	2016	2017 (e)	2018 (e)
GDP (billions USD)	49.61	42.80	44.01	43.50	45.16
GDP (Constant Prices, Annual % Change)	3.1	2.3	2.5	2.5	2.0
GDP per Capita (USD)	24,069	20,747	21,320	21,062	21,852
General Government Balance (in % of GDP)	-2.7	-1.8	-1.4e	-1.4	-1.6
General Government Gross Debt (in % of GDP)	80.9	83.1	78.9	77.7	77.4
Inflation Rate (%)	0.2	-0.5	-0.1	1.5	2.0
Unemployment Rate (% of the Labour Force)	9.7	9.0	7.9	7.0	6.6
Current Account (billions USD)	3.09	2.22	3.01e	2.41	2.30
Current Account (in % of GDP)	6.2	5.2	6.8	5.5	5.1

Source: IMF – World Economic Outlook Database 2016

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector has declined, reaching only 2.3% of the GDP in 2016 (compared to 4.2% in 1995).

The industrial sector represents about one-third of the GDP (33.6%). Historically, the dominant industries in Slovenia have been the forestry, the textile and the 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 services sector remains the most significant in the Slovenian economy. This sector, which represented 64.1% of the GDP in 2016, has shown a strong growth pattern during the last ten years, especially in the fields of information and communications technology (ITC), financial and commercial services and retail business. The tourism sector is very dynamic and is undergoing a period of strong development.

 

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	7.0	31.6	60.2
Value Added (in % of GDP)	2.3	32.4	65.4
Value Added (Annual % Change)	-1.2	2.6	2.7

Source: World Bank, 2016. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

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