Slovenia Economy - 2006

Economy - overview:
With its small transition economy and population of approximately two million, Slovenia is a model of economic success and stability for its neighbors in the former Yugoslavia. The country, which joined the EU in 2004, has excellent infrastructure, a well-educated work force, and an excellent central location. It enjoys a GDP per capita substantially higher than any of the other transitioning economies of Central Europe. In March 2004, Slovenia became the first transition country to graduate from borrower status to donor partner at the World Bank. Slovenia plans to adopt the euro by 2007 and has met the EU's Maastricht criteria for inflation. Despite its economic success, Slovenia faces growing challenges. Much of the economy remains in state hands and foreign direct investment (FDI) in Slovenia is one of the lowest in the EU on a per capita basis. Taxes are relatively high, the labor market is often seen as inflexible, and legacy industries are losing sales to more competitive firms in China, India, and elsewhere. The current center-right government, elected in October 2004, has pledged to accelerate privatization of a number of large state holdings and is interested in increasing FDI in Slovenia. In late 2005, the government's new Committee for Economic Reforms was elevated to cabinet-level status. The Committee's program includes plans for lowering the tax burden, privatizing state-controlled firms, improving the flexibility of the labor market, and increasing the government's efficiency.

GDP (purchasing power parity):
$42.26 billion (2005 est.)

GDP (official exchange rate):
$34.91 billion (2005 est.)

GDP - real growth rate:
4% (2005 est.)

GDP - per capita (PPP):
$21,000 (2005 est.)

GDP - composition by sector:
agriculture: 2.8%
industry: 36.9%
services: 60.3% (2005 est.)

Labor force:
920,000 (2005 est.)

Labor force - by occupation:
agriculture: 6%
industry: 40%
services: 54% (2002)

Unemployment rate:
9.8% (2005 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: 3.9%
highest 10%: 23% (1998)

Distribution of family income - Gini index:
28.4 (1998)

Inflation rate (consumer prices):
2.4% (2005 est.)

Investment (gross fixed):
24.8% of GDP (2005 est.)

Budget:
revenues: $16.02 billion
expenditures: $16.73 billion; including capital expenditures of $NA (2005 est.)

Public debt:
29.9% of GDP (2005 est.)

Agriculture - products:
potatoes, hops, wheat, sugar beets, corn, grapes; cattle, sheep, poultry

Industries:
ferrous metallurgy and aluminum products, lead and zinc smelting; electronics (including military electronics), trucks, electric power equipment, wood products, textiles, chemicals, machine tools

Industrial production growth rate:
2.9% (2005 est.)

Electricity - production:
13.23 billion kWh (2003)

Electricity - consumption:
12.47 billion kWh (2003)

Electricity - exports:
5.811 billion kWh (2003)

Electricity - imports:
5.975 billion kWh (2003)

Oil - production:
11.05 bbl/day (2003 est.)

Oil - consumption:
52,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Natural gas - production:
0 cu m (2003 est.)

Natural gas - consumption:
1.1 billion cu m (2003 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
1.04 billion cu m (2001 est.)

Current account balance:
-$202 million (2005 est.)

Exports:
$18.53 billion f.o.b. (2005 est.)

Exports - commodities:
manufactured goods, machinery and transport equipment, chemicals, food

Exports - partners:
Germany 18.1%, Italy 12.5%, Austria 11.4%, France 7.4%, Croatia 7.3%, Bosnia and Herzegovina 4.8% (2004)

Imports:
$19.62 billion f.o.b. (2005 est.)

Imports - commodities:
machinery and transport equipment, manufactured goods, chemicals, fuels and lubricants, food

Imports - partners:
Germany 19.6%, Italy 18.2%, Austria 14.7%, France 10% (2004)

Reserves of foreign exchange and gold:
$8.805 billion (2005 est.)

Debt - external:
$22.91 billion (30 September 2005 est.)

Economic aid - recipient:
ODA, $62 million (2000 est.)

Currency (code):
tolar (SIT)

Exchange rates:
tolars per US dollar - 192.71 (2005), 192.38 (2004), 207.11 (2003), 240.25 (2002), 242.75 (2001)