When transformation began, Slovenia was the most developed region. Due to properly conducted economic reforms, Slovenia not only avoided depression in the 1990s but kept growing and was one of the few countries that kept the industry at the stage of transformation, the experts of Analytical Center say in a new bulletin on current global economic trends.
According to the analysts, Slovenia was able to form an independent state gently enough, ensure stability of the democratic system, to carry out ownership transformation and form the market.
In 2004, the International Monetary Fund declared Slovenia a developed country, the first country of the former socialist camp. Experts believe that the advantageous geographical location and accumulated human capital contributed to its development, and political stability helped to avoid social conflicts in an acute form.
Specialists note that after high economic growth rates in the 2000s Slovenia experiences a difficult crisis period in 2009-2013 (a fall of GDP by almost 8% in 2009). By 2017, Slovenia has partially overcome difficulties but nominal GDP has still not reached the pre-crisis level of 2008 and in 2017 it amounted to USD 48.9 billion. GDP PPP per capita in Slovenia in 2017 amounted to 31.3 thousand Intl. dollar/person, which is below the average value for the EU (37.5 thousand Intl. dollar/person). Regarding this indicator, the country can be compared with such developed countries as Spain (34.9 thousand Intl. dollar/person in 2017) and the Czech Republic (32.3 thousand Intl. dollar/person) and surpasses Portugal (27.7 thousand Intl. dollar/person), and runs significantly ahead of other countries in the former Yugoslavia.
The experts believe that the reduction of export and import became one of the causes of the slowdown in economic growth in Slovenia: external shock in 2008 resulted in a negative current account balance (-5.3% of GDP); in 2009, the import decreased by 18.8%, and export by 16.6%. The rate of accumulation declined sharply over one year from 32.7% down to 23.4%. Only from 2013, the growth of export and import of goods and services are in the positive zone. In 2016-2017, the acceleration of economic growth is caused by increase in volumes of foreign trade. In 2017, the volume of export grew by 10.6%, import by 10.1%.
The solution of the problems of further development of the country will require efforts, but these are problems of a developed country with a balanced economy, the analysts state.
For more details see the bulletin "Slovenia: a developed country in Eastern Europe".
Other bulletins on current global economic trends can be found in Publications.