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Economic and political overview

Economic Overview

Slovenia has been an open market since its successful economic transition in the 2000s. As a member of the European Union since May 2004 and of the Eurozone since 2007, Slovenia is an advanced, independent, and stable country. After contracting due to the COVID-19 pandemic, Slovenia’s GDP rebounded quickly. However, the country’s economy grew by 1.6% in 2024, slowing from 2.1% in 2023 and 2.7% in 2022, according to the country's Statistical Office. Household and government spending contributed positively to GDP growth, while gross fixed capital formation and external trade had a negative impact on growth. Economic growth is forecast to accelerate to 2.5% in 2025 and 2.6% in 2026, as private consumption is expected to grow strongly, supported by employment growth and rising real wages. Investment is projected to increase, driven by the deployment of RRF-financed measures and cohesion policy projects, as well as higher demand for machinery and equipment due to improving financial conditions and stronger export demand. Meanwhile, imports are expected to rise in line with higher consumption and investment. The contribution from net exports to growth is expected to remain neutral in 2025 and turn negative in 2026, according to EU Commission data.

In 2024, Slovenia's budget deficit was just 1.2% of GDP, the lowest in five years (official governmental data). Revenue surpassed the projected EUR 14 billion, reaching EUR 14.6 billion, mainly due to record employment, higher salaries, strong business performance, and additional revenue from the Reconstruction, Development, and Provision of Financial Resources Act. This included a temporary corporate income tax increase and EUR 280 million from the Slovenian Sovereign Holding, allocated to flood recovery efforts. On the expenditure side, EUR 15.4 billion was spent, below the planned EUR 16.2 billion, resulting in savings of EUR 0.8 billion. Unspent funds for flood recovery were due to uncertainties in implementation, though nearly EUR 0.5 billion was allocated for aid, and EUR 530 million was invested in the Reconstruction Fund. In 2025, the deficit is projected at 2% (IMF). After increasing due to the COVID-19-led crisis, the public debt-to-GDP ratio decreased to 67.4% in 2024 (from 68.4% one year earlier) and is expected to further decelerate to 65.5% by 2026 (IMF). Similarly, Slovenia's average annual inflation decreased to 2% in 2024, down from 7.4% in 2023, according to data from the Statistical Office of Slovenia (SSO). Inflation in Slovenia is expected to rise slightly to 2.7% in 2025, as consumers face higher electricity bills due to the reintroduction of charges suspended during the energy price crisis and increases in grid fees. Services inflation is projected to remain high, driven by rapid wage growth. However, inflation is forecast to ease to 2.1% in 2026 (data IMF).

After strong growth in 2023, employment growth stagnated in the first half of 2024. Limited availability of workers remained the dominant factor in the labour market, according to companies, while wages continued to rise. The unemployment rate was estimated at 3.5% in 2024 and should remain broadly neutral over the forecast horizon (IMF). According to the latest data from Eurostat, around 14% of the population is at risk of poverty or social exclusion, the second-lowest ratio in the EU. Nevertheless, poverty amongst the senior population, consisting of mostly women and marginalized minorities, is an area of severe concern; to address this, the government deployed a specific strategy for elder people. Overall, the IMF estimated the country’s GDP per capita (PPP) at USD 55,683 in 2024, still below the EU average.

 
Main Indicators 2023 (E)2024 (E)2025 (E)2026 (E)2027 (E)
GDP (billions USD) 69.1773.2077.3581.0184.63
GDP (Constant Prices, Annual % Change) 2.11.52.62.52.5
GDP per Capita (USD) 32,67334,54436,49538,21839,932
General Government Balance (in % of GDP) -2.8-2.3-2.0-2.1-1.6
General Government Gross Debt (in % of GDP) 68.467.466.465.564.0
Inflation Rate (%) 7.42.02.72.12.1
Unemployment Rate (% of the Labour Force) 3.73.53.53.63.7
Current Account (billions USD) 3.092.501.931.791.79
Current Account (in % of GDP) 4.53.42.52.22.1

Source: IMF – World Economic Outlook Database , October 2021

Country Risk

See the country risk analysis provided by La Coface.

 

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Main Sectors of Industry

Slovenia has a skilled and productive labour force of around 1.05 million people out of its 2.12 million population. The agricultural sector is declining and accounts for only 1.5% of the GDP, employing around 4% of the population (World Bank, latest data available). The country counts 67,927 agricultural holdings, with the total utilized agricultural area equating to 30.6% of the total area. In 2023, the organic utilized agricultural area totalled 46,195 hectares, marking a 10% increase compared to the previous year. An additional 8,408 hectares were undergoing conversion to organic farming. Combined, this accounted for about 11% of the total utilized agricultural area being cultivated organically (Slovenian Statistical Office). The country’s main crops include cereals like corn and wheat, as well as fruits such as apples, grapes, and berries. Vegetables like potatoes, cabbage, and carrots are commonly grown, along with oilseeds like sunflower and rapeseed. Forage crops, including alfalfa and clover, support the country's livestock production. Forestry is a key economic factor, with 56% of the land area forested and an annual production value of EUR 250 million contributing to the economy. The value of crop production in 2024 was expected to reach EUR 884 million, reflecting a 6% increase compared to the previous year. This growth is primarily due to a 9% rise in production volume, despite a 3% decrease in prices (SSO).

The industrial sector represents 29.7% of GDP and almost one-third of employment (32.2%). Historically, the dominant industries in Slovenia have been forestry, textiles, and metallurgy. Since the 1980s, mechanical industries (automobiles, tool machines) and high-value-added industries (electronics, pharmacy, and chemicals) have experienced significant development. The World Bank estimates the manufacturing sector to contribute 20% of GDP. Slovenia's industrial output decreased by 1.2% in 2024, marking the second consecutive year of decline, according to the country's Statistical Office. The largest annual drop was seen in the electricity, gas, and steam sector, which fell by 21.5%. In contrast, mining experienced the largest increase, rising by 14.3% (SSO).

The tertiary sector remains the most significant in the Slovenian economy. It represents 57.7% of the GDP and employs 63.8% of the total workforce, showing a strong growth pattern over the last ten years, especially in information and communications technology (ITC), financial, commercial services, and retail businesses. The tourism sector is dynamic and has experienced strong development in recent years. After suffering due to the COVID-19 pandemic, the country recorded a 6.3%  increase in tourist arrivals in 2024 compared to 2023, welcoming a total of 6.58 million visitors. Overnight stays increased by 4.5% year-on-year to 16.85 million, according to the Statistical Office of the Republic of Slovenia. The retail sector is also important, although in 2024 volume turnover decreased by 0.6% compared to 2023. Retail trade in automotive fuel fell by 6.4%, while retail trade in food products increased by 1.5% and in non-food products by 0.3%. Volume turnover from trade and repair of motor vehicles rose by 0.1% on a monthly basis (SSO). According to the latest figures from the European Banking Federation, the Slovenian banking sector comprises 9 commercial banks, one development and export bank (100% owned by the government), three savings banks, and two branches of foreign banks.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 4.0 32.2 63.8
Value Added (in % of GDP) 1.5 29.7 57.7
Value Added (Annual % Change) -3.9 5.6 1.2

Source: World Bank - Latest available data.

 
Monetary Indicators 20162017201820192020
Euro (EUR) - Average Annual Exchange Rate For 1 USD 0.940.890.850.890.88

Source: World Bank - Latest available data.

 

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Foreign Trade

Slovenia is highly open to foreign trade, which represents about 160% of the country's GDP (World Bank, latest data available). This high level of openness makes Slovenia very dependent on the economic health of its main commercial partners: the country is integrated within German and Austrian production chains for automobiles and electrical and electronic equipment, and in Swiss chains for the pharmaceuticals industry, and generates more than half of its goods exports from these four sectors. The largest share of total trade in 2023 was medicinal and pharmaceutical products, constituting approximately one-third (34%) of the total export value. Following closely were products in the categories of road vehicles (8.4%), electrical machinery, apparatus, and appliances (6.7%), general industrial machinery and equipment (4.1%), and petroleum, petroleum products, and related materials (3.7%). Regarding imports, organic chemicals took precedence, accounting for 19.0% of the total imports and displaying a twofold increase compared to the previous year. They were succeeded by medicinal and pharmaceutical products (14.3%), road vehicles (8.0%), petroleum, petroleum products, and related materials (6.1%), and electrical machinery, apparatus, and appliances (5.2% - data Slovenia Statistical Office).

Data from the national statistical office show that in 2023 the main export destinations were Switzerland (27.3% of the total), Germany (13.5%), Italy (8.6%), Croatia (7.8%), and Austria (5.7%); while the country imported the most in terms of value from Switzerland (16.4%), China (13.0%), Germany (12.2%), Italy (10.3%), and Austria (7.2%). The EU accounted for 55.5% of total exports and 55.9% of imports.

Slovenia’s overall trade balance is structurally positive; however, the country is generally a net importer of goods. The trend reversed in 2023, when exports and imports of goods stood at USD 73 billion and 71.4 billion, respectively. In the same year, services exports reached USD 12.7 billion against USD 8.5 billion in imports (data WTO). Therefore, the country’s overall trade balance was estimated to be positive by 6.4% of GDP (from 1.7% in 2022). The latest data from Statistics Slovenia show that, in 2024, the country recorded a trade deficit of EUR 7.63 billion (USD 7.9 billion). Exports totalled EUR 61.48 billion, rising by 11.8% year over year, while imports increased by 21.1% to EUR 69.1 billion.

 
Foreign Trade Values 20192020202120222023
Imports of Goods (million USD) 44,00742,22557,56069,76171,445
Exports of Goods (million USD) 44,94344,83257,35269,71673,034
Imports of Services (million USD) 6,4385,8017,3988,0168,559
Exports of Services (million USD) 9,6937,9919,99211,65612,746

Source: World Trade Organisation (WTO) ; Latest available data

Foreign Trade Indicators 20192020202120222023
Foreign Trade (in % of GDP) 160.0147.5162.1186.2160.1
Trade Balance (million USD) 1,4562,6651,072-2,288469
Trade Balance (Including Service) (million USD) 4,7094,8553,6661,3524,351
Imports of Goods and Services (Annual % Change) 4.7-9.117.89.2-4.5
Exports of Goods and Services (Annual % Change) 4.5-8.514.56.8-2.0
Imports of Goods and Services (in % of GDP) 75.769.378.192.276.8
Exports of Goods and Services (in % of GDP) 84.478.384.094.083.3

Source: World Bank ; Latest available data

Foreign Trade Forecasts 20242025 (e)2026 (e)2027 (e)2028 (e)
Volume of exports of goods and services (Annual % change) 1.74.34.54.84.6
Volume of imports of goods and services (Annual % change) 4.35.04.85.04.8

Source: IMF, World Economic Outlook ; Latest available data

Note: (e) Estimated Data

 
International Economic Cooperation
Slovenia is a member of the EU since 1st May, 2004 and as such is a member of the EU Customs Union.
 

Main Partner Countries

Main Customers
(% of Exports)		 2023
Switzerland 27.2%
Germany 13.5%
Italy 8.6%
Croatia 7.8%
Austria 5.7%
See More Countries 37.2%
Main Suppliers
(% of Imports)		 2023
Switzerland 16.9%
China 15.7%
Germany 10.7%
Italy 9.1%
Austria 5.6%
See More Countries 42.0%

Source: Comtrade, Latest Available Data

 

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Political Outline

Current Political Leaders
President: Natasa PIRC MUSAR (since 23 December 2022)
Prime Minister: Robert GOLOB (since 1 June 2022)
Next Election Dates
Presidential: 2027
National Council: November 2027
National Assembly: April 2026
Main Political Parties
Slovenia is a parliamentary republic with a multi-party system. The major parties in Slovenia are:

- Freedom Movement (GS): centre to centre-left, party to the ruling coalition government
- Slovenian Democratic Party (SDS): centre-right
- Social Democrats (SD): centre-left
- The Left (Levica): eco-socialist
- New Slovenia (NSi): centre-right, pro-European

Other parties include:
- Democratic Party of Slovenian Pensioners (DeSUS): centrist, party to the ruling coalition government
- Slovanian National Party (SNS): slovenian nationalism
- Alliance of Social Liberal Democrats (ZSD).

Executive Power
The President of Slovenia is the head of state, elected by popular vote for a five-year term, which can be renewed once. The President's role is largely ceremonial, serving as the country's symbolic leader and commander-in-chief of the armed forces. After parliamentary elections, the President consults with party leaders and nominates a candidate for Prime Minister, usually the leader of the majority party or coalition. The National Assembly then elects the Prime Minister, who serves a four-year term. The Prime Minister is the head of government, responsible for the implementation of laws and managing the day-to-day affairs of the country. The Prime Minister also nominates members of the Council of Ministers (cabinet), which are then confirmed by the National Assembly.
Legislative Power
The legislature is bicameral in Slovenia. The parliament consists of:

  • National Assembly (the lower house) with 90 seats; 88 members are elected through proportional voting, while 2 members are elected by ethnic minorities. Members serve four-year terms.
  • National Council (the upper house, more like an advisory body) with 40 seats; its members are elected indirectly, representing social, economic, professional, and local interests, and serve five-year terms.

The National Assembly is the most important power center in the country. The executive branch of government is directly or indirectly dependent on the support of the National Assembly. The Prime Minister cannot dissolve the parliament; only the President can do so under specific circumstances.

 

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