Slovenia Economic Outlook
A small but prosperous economy:
Slovenia, with a GDP of around $70 billion, is one of the most developed economies in Central and Eastern Europe. The country has a well-diversified industrial base, strong export performance, and a high standard of living. Growth has been solid in recent years, but Slovenia faced economic headwinds in 2023 due to rising inflation, weakening external demand, and tighter monetary policy. Despite these challenges, Slovenia remains one of the EU’s most stable economies.
Industrial strength and exports:Slovenia’s economy is heavily export-oriented, with major industries including pharmaceuticals, automotive manufacturing, and machinery. The country is home to Krka and Lek, two major pharmaceutical companies, and has a strong presence in high-value manufacturing. Trade is highly integrated with the EU, with Germany, Italy, and Austria as key partners. Slovenia also benefits from a well-developed tourism sector, particularly in Ljubljana and the Alpine region.
Challenges:Despite its strong fundamentals, Slovenia faces challenges such as an aging population, labor shortages, and high public debt. Inflation exceeded 10% in 2022 but has since moderated, though high interest rates have dampened investment. The country also has a relatively high tax burden, which could impact competitiveness. Additionally, Slovenia’s small domestic market limits growth potential, making export diversification crucial.
Slovenia’s economic outlook:Slovenia’s economic expansion will be above the EU average going forward, supported by EU funding, strong exports, and ongoing digital transformation. The government is focusing on green energy and innovation to enhance long-term competitiveness. However, demographic pressures and external risks could weigh on future growth. Continued investment in infrastructure, education, and business-friendly policies will be key to sustaining Slovenia’s economic success.
Slovenia's Macroeconomic Analysis:
Nominal GDP of USD 72.4 billion in 2024.
Nominal GDP of USD 72.4 billion in 2024.
GDP per capita of USD 34,188 compared to the global average of USD 10,589.
GDP per capita of USD 34,188 compared to the global average of USD 10,589.
Average real GDP growth of 2.9% over the last decade.
Average real GDP growth of 2.9% over the last decade.
Sector Analysis
In 2022, services accounted for 57.8% of overall GDP, manufacturing 19.8%, other industrial activity 20.5%, and agriculture 1.9%. Looking at GDP by expenditure, private consumption accounted for 53.0% of GDP in 2023, government consumption 19.5%, fixed investment 20.8%, and net exports 6.7%.International trade
In 2023, manufactured products made up 86.2% of total merchandise exports, mineral fuels 5.6%, food 3.8%, ores and metals 3.1% and agricultural raw materials 1.1%, with other categories accounting for 0.2% of the total. In the same period, manufactured products made up 79.1% of total merchandise imports, mineral fuels 9.0%, food 6.3%, ores and metals 3.8% and agricultural raw materials 1.5%, with other goods accounting for 0.3% of the total. Total exports were worth USD 45.60 billion in 2024, while total imports were USD 45 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.9% in the decade to 2024. To read more about GDP growth in Slovenia, go to our dedicated page.
Fiscal policy
Slovenia's fiscal deficit averaged 3.3% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 5.8% in the decade to 2024. For more information on Slovenia's unemployment click here.
Inflation
Inflation averaged 2.3% in the decade to 2024. Go to our Slovenia inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Slovenia monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Slovenia
Annual GDP growth edged down in Q4 amid softer momentum in private consumption, public spending and exports. Turning to Q1, our panelists expect GDP growth to have inched up from Q4; past rate cuts, EU fund inflows and higher public sector wages—part of a EUR 1.3 billion remuneration reform—should have bolstered domestic demand. Available data supports this forecast for GDP growth: In January, industrial output growth improved compared to Q4, merchandise exports remained supportive, and retail sales rebounded. On a less positive note, economic sentiment remained downbeat through March. In other news, in March, U.S. President Trump announced 25% import tariffs on cars and car components from 2 April, boding ill for the pivotal automotive sector in Slovenia, and in turn for exports and industrial production.Slovenia Economic Forecasts
Projections out to 2034.55 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 22 expert analysts.
Want to get insight on the economic outlook for Slovenia in the coming years? FocusEconomics collects projections out to 2034 on 55 economic indicators for Slovenia from a panel of 22 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Slovenia economy. To download a sample report on the Slovenia's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.