Economy of Slovenia

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Economy of Slovenia
Slovenian One Euro coin
Currency	1 Euro = 100 eurocent
Fiscal year	Calendar year
Trade organisations	EU and WTO
Statistics
GDP (PPP)	$35.21 bn(2005) (84th [1])
GDP growth	4% (2005 est.)
GDP per capita	$21,500 (2005 est.)
GDP by sector	agriculture (2.8%), manufacturing (36.9%), services (60.3%) (2005)
Inflation (CPI)	2.5% (2005)
Pop below poverty line	10% (2003 est.)
Gini index	{{{gini}}}
Labour force	920,000 (2005)
Labour force by occupation	services (56.1%), manufacturing (39.1%), agriculture (4.8%) (2004)
Unemployment	6.3% (2005)
Main industries	ferrous metallurgy and aluminum products, lead and zinc smelting; electronics (including military electronics), trucks, electric power equipment, wood products, textiles, chemicals, machine tools
Trading Partners
Exports	$18.53 billion f.o.b. (2005 est.)
Export goods	manufactured goods, machinery and transport equipment, chemicals, food
Main partners	Germany 19.9%, Italy 12.7%, Croatia 9.4%, Austria 8.1%, France 8.1% (2005)
Imports	$19.62 billion f.o.b. (2005 est.)
Imports goods	machinery and transport equipment, manufactured goods, chemicals, fuels and lubricants, food
Main Partners	Germany 19.5%, Italy 18.6%, Austria 12%, France 7.2%, Croatia 4.2% (2005)
Public finances
Public debt	$18.97 billion (28.5% of GDP) (2005)
Revenues	$16.02 bn (2005)
Expenses	$16.73 billion (2005)
Economic aid	recipient: ODA, $484 mn (2005)
Main source [2] All values, unless otherwise stated, are in US dollars

Slovenia today enjoys both a prosperity and stability, as well as a GDP per capita substantially higher than that of the other transitioning economies of Central Europe.

Contents 1 History 2 Current situation 3 Trade 4 Economic performance 5 See also

[edit] History

Although it comprised only about one-thirteenth of Yugoslavia'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. It thus gained independence in 1991 with an already relatively prosperous economy and strong market ties to the West.

Since that time, it has pursued diversification of its trade with the West and integration into Western and transatlantic institutions vigorously. Slovenia is a founding member of the World Trade Organization, joined CEFTA in 1996, and joined the European Union on May 1, 2004. In June 2004 it joined the European Exchange Rate Mechanism; Slovenia introduced the Euro at the beginning of 2007 which circulated allongside the Tolar until 14th January 2007. Slovenia also participates in SECI (Southeast European Cooperation Initiative), as well as in the Central European Initiative, the Royaumont Process, and the Black Sea Economic Council.

[edit] Current situation

Today, Slovenia is the most prosperous country of transition Europe and is well-poised to join the mainstream of modern industrial economies. It benefits from a well-educated and productive work force, and its political and economic institutions are vigorous and effective. Its per capita income is now 84% of the EU average. Although Slovenia has taken a cautious, deliberate approach to economic management and reform, with heavy emphasis on achieving consensus before proceeding, its overall record is one of success.

The current account deficit began in 1998 (-US$147.2 million), deepened in 1999 to -$782.6 million, and improved slightly in 2000 on stronger exports to -$594.2 million. In 2000, Slovenia's economic growth reached 4.8 % (2004), annual inflation, 2.8% (2005), and the debt to GDP ratio was well within Maastricht parameters. Due to its macroeconomic stability, favourable foreign debt position, and obvious interest in EU membership, Slovenia consistently receives the highest credit rating of all transition economies.

[edit] Trade

Slovenia's trade is oriented towards Western (EU) countries, mainly Germany, Austria, Italy, and France. 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 and imports combined). About two-thirds of Slovenia's trade is with EU members, a primary motivation for seeking EU membership.

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 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 over one-third of GDP. As in most industrial economies, services make up an increasing share of output (60.1%), notably in financial services.

[edit] Economic performance

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Agriculture, forestry, and fishing is a comparatively low 2% of GDP and engages only 6% of the population. The average farm is only 5.5 hectares. Part of Slovenia lies in the Alpe-Adria bioregion, which is currently involved in a major initiative in organic farming. 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%. ^[1]

Public finances have recently shown modest deficits on the order of 1.2% of GDP through 1999. Slovenia has an increasing current account deficit, declining from a balance in 1997 to -$594.2 million in 2000. While the authorities have been successful in stabilizing the Slovenian tolar and bringing inflation down from more than 200% in 1992 to an estimated 2.8% in 2005, inflation edged up from 1999 with the introduction of a value-added tax.

Slovenia's traditional anti-inflation policy relied heavily on capital inflow restrictions. Its privatization 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 United States investments of $125 million by Goodyear in 1997.

[edit] See also

• Economy of Europe
• Slovenia
• Bank of Slovenia
• Collection euro Site de l’association EuroMismatique, des collectionneurs de monnaies en euro.
• Forum euro Forum des collectionneurs de monnaies en euro.