Economic trends
Due to its stability and its accession to the EU in May 2004, the Slovenian economy has been showing good results for several years. Slovenia benefits from a qualified and productive workforce and its unemployment rate is one of the lowest in Europe. However, the steady increase in prices, which has not stopped since the Euro was established in January 2007, has had its negative effects in domestic consumption. The government had to adopt a stimulus economic active plan providing measures for job support, reinforcing credit access and financing public infrastructures.
The global financial crisis has affected Slovenia, especially in the field of foreign trade. As a fact, foreign demand, mainly from Germany, has been strongly contracted. The banking sector was not spared, even though it was not exposed directly to the risk of toxic assets. Slovenia has adopted a severe budget for 2010 and 2011 involving a reduction of the deficit and public expenditures, freezing salaries and a retirement reform. The IMF predicts a growth of 2.4% in 2011.
Main branches of industry
During the last few years, agriculture has declined considerably reaching only 2.5% of the GDP (in relation to 4.2% in 1995).
The industrial sector represents about one third of the GDP. Historically, the dominant industries in Slovenia were forestry, textile and metallurgical. After the 1980's, the mechanical industries (automobile, tool machines) and the high value-added industries (electronics, pharmacy, chemicals) have been greatly developed.
The Slovenian economy is becoming more and more based on services. This sector, which represents more than 60% of the GDP, has experienced a strong growth during the last ten years, especially in the fields of information technology and communication, financial and commercial services, tourism and retail business.
International trade
Slovenia is a founding member of WTO. It is highly open to foreign trade especially with the EU which represents about two thirds of its trade. The share of foreign trade is more than 100% of its GDP. Its three main clients are Germany, Italy and Croatia. Slovenia's main exports are vehicles, machinery, electric & electronic equipment, furniture and pharmaceutical products. Its three main suppliers are Germany, Italy and Austria. The country's main imports are vehicles, machinery, mineral fuels and oil, iron and steel. This high level of openness makes Slovenia very dependent of the economic health of its main commercial partners. It is especially the case in the context of the global economic crisis. Due to the drop in global demand, Sloven exports have decreased and the deficit of the trade balance was deteriorated, which dropped to almost 6% of the GDP.
Foreign trade in Slovenia is structurally in deficit with Western Europe where its main partners are located. Some exports have resisted well the economic crisis, especially metals and generic pharmaceutical products as well as the exports of tool machines and electronic equipment. Once the economic conditions of Slovenia's main partners (Italy and Germany) improves, the level of imports and exports should revive and increase again, starting in 2011.
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Last updates: February 2012
