Economy of Slovenia
Currency	Euro Euro The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...  (EUR)
Fiscal year	Calendar year
Trade Organisations	EU, WTO
Statistics
GDP Gross domestic product Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....  Ranking (2009)	86th
GDP (2009)	EUR34.894 $48.474 current $51.938 PPP billion 1000000000 (number) 1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....  ]]),.
GDP growth rate (2009)	-6.0% nominal -6.9% per capita nominal -7.8% real -8.7% per capita real
GDP per Capita (2009)	EUR17,092 $23,744 current $25,440 PPP
GDP by sector (2007)	primary (2.4%) industry (26.4%) construction (8.0) services (63.2%)
GDP structure (2007)	Private consumption (51.8%) Public consumption (17.8%) Investments (31.7%) Export (70.8%) Import (72.1%)
Inflation Inflation In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...  rate	2009 0.9%, 02/2010 1.3%
Pop below poverty line (2008)	12.3 %
Pop below Gini coefficient Gini coefficient The Gini coefficient is a measure of statistical dispersion developed by the Italian statistician and sociologist Corrado Gini and published in his 1912 paper "Variability and Mutability" ....  (2008)	23.4 %
Employed Population (2008)	942,473
Employed Population by occupation (2008)	primary (4.7%) secondary (37.6%) tertiary (57.7%)
Unemployment Unemployment Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...  rate	7.8% (December 2010)
Average wage (2010)	1,041 € / 1,405 $ (net) 1,634 € / 2,205 $ (gross)
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 Germany Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...  18.2%%, Italy Italy Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...  11.4%, Croatia Croatia Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...  8.1%, Austria Austria Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...  7.3%, France France The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...  5.5%, Russia Russia Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...  4.7%
Total imports	(2009 est.) $24.24 billion f.o.b.
Main Partners (2008 est)	Germany Germany Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...  17.0%%, Italy Italy Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...  16.4%, Austria Austria Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...  11.1%, France France The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...  4.6%, Croatia Croatia Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...  4.1%
Current account balance 2008	$-2.9 billion (-5.3% of GDP)
Public Finances
Total Public Debt (2010)	38.8% of GDP
Revenues (2008)	42.66% of GDP
Expenses (2008)	43.61% of GDP
Budget Balance (2010)	-5.8% of GDP
Economic Aid (ODA Official development assistance Official development assistance is a term compiled by the Development Assistance Committee of the Organisation for Economic Co-operation and Development to measure aid. The DAC first compiled the term in 1969. It is widely used by academics and journalists as a convenient indicator of... ) (2010)	Donor: EUR44.2 million (0.13% of GNI)

Slovenia

Slovenia

Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...

 today is a developed country

Developed country

A developed country is a country that has a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue...

 that enjoys prosperity and stability, as well as a GDP

Gross domestic product

Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 per capita at 88% of the EU27 average.

History

Although it comprised only about one-thirteenth of Yugoslavia

Socialist Federal Republic of Yugoslavia

The Socialist Federal Republic of Yugoslavia was the Yugoslav state that existed from the abolition of the Yugoslav monarchy until it was dissolved in 1992 amid the Yugoslav Wars. It was a socialist state and a federation made up of six socialist republics: Bosnia and Herzegovina, Croatia,...

'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

World Trade Organization

The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...

, joined CEFTA in 1996, and joined the European Union

European Union

The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 on 1 May 2004. In June 2004 it joined the European Exchange Rate Mechanism

European Exchange Rate Mechanism

The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979, as part of the European Monetary System , to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of...

. The euro

Euro

The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

 was introduced at the beginning of 2007 and circulated alongside the tolar

Tolar

Tolar is the Czech name for the silver coin mined in Bohemia in 16th century in Údolí Svatého Jáchyma . The modern word dollar was derived from the Spanish dollars, so called in the English speaking world because they were of similar size, and weight to the German Thalers...

 until 14 January 2007. Slovenia also participates in SECI (Southeast European Cooperation Initiative), as well as in the Central European Initiative

Central European Initiative

The Central European Initiative is a forum of regional cooperation in Central, Eastern and South Eastern Europe, counting 18 member states. It was formed in Budapest in 1989.-History:...

, the Royaumont Process, and the Black Sea Economic Council.

Current situation

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. 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. 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

Baltic countries

The term Baltic states refers to the Baltic territories which gained independence from the Russian Empire in the wake of World War I: primarily the contiguous trio of Estonia, Latvia, Lithuania ; Finland also fell within the scope of the term after initially gaining independence in the 1920s.The...

 and Finland. Unemployment rose from 5.1% in 2008 to 11.1% in November 2010,, which was above the average in the European Union and is still rising. In January 2011

January 2011

January 2011 was the first month of the current year. It began on a Saturday and ended after 31 days on a Monday.- Portal:Current events :This is an archived version of Wikipedia's Current events Portal from January 2011....

, the total national debt

Government debt

Government debt is money owed by a central government. In the US, "government debt" may also refer to the debt of a municipal or local government...

 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.

On 11 November 2011, interest rates on the 10-year government bonds

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

 of Slovenia surged past the 7% mark

High-yield debt

In finance, a high-yield bond is a bond that is rated below investment grade...

, in the context of the European sovereign debt crisis.

Trade

Slovenia's trade is orientated towards other EU countries, mainly Germany

Germany

Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, Austria

Austria

Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

, Italy

Italy

Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

, and France

France

The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan 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.

Economic performance

The traditional primary industries of Agriculture

Agriculture

Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

, forestry

Forestry

Forestry is the interdisciplinary profession embracing the science, art, and craft of creating, managing, using, and conserving forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit. Forestry is practiced in plantations and natural stands...

, and fishing

Fishing

Fishing is the activity of trying to catch wild fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....

 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

Alpe-Adria

Alpe-Adria is a bioregion in Central Europe, embracing all of Slovenia, the Austrian states of Carinthia and Styria, and the Italian regions of Friuli-Venezia-Giulia and Veneto. , it is the subject of a proposal to create the world's first organic bioregion....

 bioregion, which is currently involved in a major initiative in organic farming

Organic farming

Organic farming is the form of agriculture that relies on techniques such as crop rotation, green manure, compost and biological pest control to maintain soil productivity and control pests on a farm...

. 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%.

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. There was a slight surplus in 2008 with revenues totalling $23.16 billion and expenditures $22.93 billion. Government

Government of Slovenia

The Government of the Republic of Slovenia is the cabinet that excersises executive authority in Slovenia pursuant to the Constitution and the laws of Slovenia. It is also the highest administrative authority in Slovenia. It comprises the Prime Minister and 15 ministers, three of them without...

 expenditure equalled 38 percent of GDP. , the total national debt

Government debt

Government debt is money owed by a central government. In the US, "government debt" may also refer to the debt of a municipal or local government...

 of Slovenia was unknown. The Statistical Office of the Republic of Slovenia

Statistical Office of the Republic of Slovenia

Statistical Office of the Republic of Slovenia is an independent Slovenian state institution in charge of official statistical surveying. It is responsible directly to the Prime Minister of Slovenia...

 (SURS) reported it to be (not counting state-guaranteed loans) 19.5 billion euros or 54.2% of GDP

Gross domestic product

Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 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

Finance (newspaper)

Finance is the only daily Slovenian business and financial newspaper. The idea to publish it was brought forward by Iztok Jurančič already before 1991, when Slovenia declared its independence. However, it was realized only in 1992. At first, the newspaper was published by the company Gospodarski...

 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

European Union

The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

. On 12 January 2011, the Slovenian Court of Audit

Court of Audit of the Republic of Slovenia

The Court of Audit of the Republic of Slovenia is the highest body for supervising state accounts, the state budget and all public spending in Slovenia. The Constitution of Slovenia further provides that the Court of Audit is independent in the performance of its duties and bound by the...

 rejected the data reported by the ministry as incorrect and demanded the dismissal of the finance minister Franc Križanič.

Slovenia's traditional anti-inflation

Inflation

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...

 policy relied heavily on capital inflow restrictions. Its privatization

Privatization

Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...

 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

Goodyear Tire and Rubber Company

The Goodyear Tire & Rubber Company was founded in 1898 by Frank Seiberling. Goodyear manufactures tires for automobiles, commercial trucks, light trucks, SUVs, race cars, airplanes, farm equipment and heavy earth-mover machinery....

 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

Ljubljana Stock Exchange

-About the Ljubljana Stock Exchange:The core business of the Ljubljana stock exchange is to ensure a secure, efficient and successful operation of the regulated segment of the Slovene capital market, in accordance with the law and other regulations.LJSE performs the following business activities:*...

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.