Economy of Slovenia | ||
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Currency | Euro (EUR) | |
Fiscal year | Calendar year | |
Trade Organisations | EU, WTO | |
Statistics | ||
GDP Ranking (2009) | 86th [1] | |
GDP (2009) | EUR34.894 $48.474 current $51.938 PPP billion [2]]]).[3] |
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GDP growth rate (2009) | -6.0% nominal -6.9% per capita nominal -7.8% real -8.7% per capita real |
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GDP per Capita (2009) | EUR17,092 $23,744 current $25,440 PPP |
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GDP by sector (2007) | primary (2.4%) industry (26.4%) construction (8.0) services (63.2%) |
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GDP structure (2007) | Private consumption (51.8%) Public consumption (17.8%) Investments (31.7%) Export (70.8%) Import (72.1%) |
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Inflation rate | 2009 0.9%, 02/2010 1.3% [4] | |
Pop below poverty line (2008) | 12.3 %[5] | |
Pop below Gini coefficient (2008) | 23.4 %[5] | |
Employed Population (2008) | 942,473[6] | |
Employed Population by occupation (2008) | primary (4.7%) secondary (37.6%) tertiary (57.7%)[6] |
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Unemployment rate | 7.8% (December 2010)[7] | |
Average wage (2010) | 1,041 € / 1,405 $ (net) 1,634 € / 2,205 $ (gross) [8] |
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Main Industries | ferrous metallurgy and aluminum products, lead and zinc smelting; electronics (including military electronics), trucks, automobiles, electric power equipment, wood products, textiles, chemicals, machine tools | |
Total exports | (2009 est.) $23.02 billion f.o.b. | |
Main Partners (2008 est) | Germany 18.2%%, Italy 11.4%, Croatia 8.1%, Austria 7.3%, France 5.5%, Russia 4.7% | |
Total imports | (2009 est.) $24.24 billion f.o.b. | |
Main Partners (2008 est) | Germany 17.0%%, Italy 16.4%, Austria 11.1%, France 4.6%, Croatia 4.1% | |
Current account balance 2008 | $-2.9 billion (-5.3% of GDP) [9] | |
Public Finances | ||
Total Public Debt (2010) | 38.8% of GDP [10] | |
Revenues (2008) | 42.66% of GDP [11] | |
Expenses (2008) | 43.61% of GDP [11] | |
Budget Balance (2010) | -5.8% of GDP [10] | |
Economic Aid (ODA) (2010) | Donor: EUR44.2 million (0.13% of GNI) [12] |
Slovenia today is a developed country that enjoys prosperity and stability, as well as a GDP per capita at 88% of the EU27 average.[13]
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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.[14] 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 1 May 2004. In June 2004 it joined the European Exchange Rate Mechanism. The euro was introduced at the beginning of 2007 and circulated alongside the tolar until 14 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.
Today, Slovenia is a prosperous country and has achieved the rank of a mainstream modern postindustrial economy. It advanced to the rank of advanced economies in 2007.[15] It benefits from a well-educated and productive work force, and its political and economic institutions are vigorous and effective. Its 2008 GDP per capita is now 91% of the European Union average.[16] 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 2008, Slovenia's economic growth reached 4.5%, annual inflation stood at 6% in 2008, 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.
In the late 2000s economic crisis, Slovenian economy suffered a severe setback. In 2009, the Slovenian GDP per capita shrunk by −7.33 %, which was the biggest fall in the European Union after the Baltic countries and Finland. Unemployment rose from 5.1% in 2008 to 11.1% in November 2010,[17] which was above the average in the European Union and is As of February 2011[update] still rising.[18][19] In January 2011, the total national debt of Slovenia was unknown, but has been estimated by media to amount to 22,43 billion euros or almost 63% of GDP, surpassing the European Union limit of 60% of GDP. The estimate included local government debt and debt from state-owned enterprises - including debt owned to the state - as well as Euro rescue package guarantees.[20]
On 11 November 2011, interest rates on the 10-year government bonds of Slovenia surged past the 7% mark, in the context of the European sovereign debt crisis.[21][22]
Slovenia's trade is orientated towards other 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, but that's about to change.
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 (57.1 percent), notably in financial services.
The traditional primary industries of Agriculture, forestry, and fishing 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 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%.[23]
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.[24] There was a slight surplus in 2008 with revenues totalling $23.16 billion and expenditures $22.93 billion.[25] Government expenditure equalled 38 percent of GDP. As of January 2011[update], the total national debt of Slovenia was unknown. The Statistical Office of the Republic of Slovenia (SURS) reported it to be (not counting state-guaranteed loans) 19.5 billion euros or 54.2% of GDP at the end of September 2010. According to the data provided by the Slovenian Ministry of Finance 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.[26][27] On 12 January 2011, the Slovenian Court of Audit rejected the data reported by the ministry as incorrect and demanded the dismissal of the finance minister Franc Križanič.[28]
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 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 December 31, 2007, the value of shares listed on the Ljubljana Stock Exchange was $29 billion.
Due to the financial crisis that has affected most countries in the world, Slovenia's gross domestic product contracted 7.9% in 2009. The country experienced the largest contraction within the euro zone. The government is working hard to encourage economic activity. New greenfield investments are backed up by government money.
Investments from neighboring Croatia have begun in Slovenia. On July 1, 2010, Droga Kolinska was purchased by Atlantic Group of Croatia for 382 million euros. Investments from Croatia are expected to continue in the future. Slovenia and Croatia have drastically improved relations during the course of 2010. This new found friendship will lead to many investments between the two countries.
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