Slovenia Economy 2007

Economy - overview:
With a GDP per capita substantially greater than the other transitioning economies of Central Europe, Slovenia is a model of economic success and stability for its neighbors from the former Yugoslavia. The country, which joined the EU in May 2004 and joined the eurozone on 1 January 2007, has excellent infrastructure, a well-educated work force, and an excellent central location. Privatization of the economy proceeded at an accelerated pace in 2002-05. Despite lackluster economic performance in Europe in 2001-05, Slovenia maintained moderate growth. Structural reforms to improve the business environment have allowed for greater foreign participation in Slovenia's economy and have helped to lower unemployment. In March 2004, Slovenia became the first transition country to graduate from borrower status to donor partner at the World Bank. 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. Although tax reforms were implemented in December 2006, taxes are still 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):
$47.01 billion (2006 est.)

GDP (official exchange rate):
$37.92 billion (2006 est.)

GDP - real growth rate:
5.2% (2006 est.)

GDP - per capita (PPP):
$23,400 (2006 est.)

GDP - composition by sector:
agriculture: 2.3%
industry: 34.5%
services: 63.2% (2006 est.)

Labor force:
911,000 (2006 est.)

Labor force - by occupation:
agriculture: 4.8%
industry: 39.1%
services: 56.1% (2004)

Unemployment rate:
9.6% (2006 est.)

Population below poverty line:
12.9% (2004)

Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 21.4% (1998)

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

Inflation rate (consumer prices):
2.5% (2006 est.)

Investment (gross fixed):
25.8% of GDP (2006 est.)

Budget:
revenues: $16.27 billion
expenditures: $16.59 billion (2006 est.)

Public debt:
25.8% of GDP (2006 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, automobiles, electric power equipment, wood products, textiles, chemicals, machine tools

Industrial production growth rate:
5.6% (2006)

Electricity - production:
14.9 billion kWh (2006)

Electricity - consumption:
13.71 billion kWh (2006)

Electricity - exports:
4.8 billion kWh (2006)

Electricity - imports:
4.07 billion kWh (2006)

Oil - production:
8 bbl/day (2004 est.)

Oil - consumption:
53,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
4.795 million cu m (2005 est.)

Natural gas - consumption:
1.078 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
1.073 billion cu m (2005)

Current account balance:
$-941.5 million (2006 est.)

Exports:
$21.39 billion f.o.b. (2006 est.)

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

Exports - partners:
Germany 20.1%, Italy 13%, Croatia 9.1%, Austria 8.8%, France 6.5%, Russia 4.4% (2006)

Imports:
$22.79 billion f.o.b. (2006 est.)

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

Imports - partners:
Germany 19.7%, Italy 18.1%, Austria 11.9%, France 6%, Croatia 4.7% (2006)

Economic aid - recipient:
ODA, $484 million (2004-06)
note: in March 2004, Slovenia became the first transition country to graduate from borrower status to donor partner at the World Bank (2004-06)

Reserves of foreign exchange and gold:
$7.139 billion (2006 est.)

Debt - external:
$21.41 billion (2006 est.)

Stock of direct foreign investment - at home:
$7.459 billion (2006 est.)

Stock of direct foreign investment - abroad:
$4.259 billion (2006 est.)

Market value of publicly traded shares:
$15.18 billion (2006)

Currency (code):
euro (EUR)
note: on 1 January 2007, the euro became Slovenia's currency; both the tolar and the euro were in circulation from 1 January until 15 January 2007

Exchange rates:
tolars per US dollar - 190.85 (2006), 192.71 (2005), 192.38 (2004), 207.11 (2003), 240.25 (2002)
note: Slovenia adopted the euro as its currency on 1 January 2007