Slovenia overview


In Slovenia we focus on:

Corporate sector restructuring, expanding the role of the private sector and promoting good corporate governance. Lifting the obstacles presented by excessive leverage and poorly structured corporate finances is a precondition for preventing a rapid rise in insolvencies, stabilising the banking sector and arresting the on-going economic contraction. The EBRD is seeking bankable opportunities to help restore financial viability of companies with sound underlying businesses. We will participate in the privatisation of key enterprises currently under state control, either through debt or equity financing.

Stabilising the financial sector. In what will likely be a protracted process of deleveraging, recapitalisation and consolidation, the EBRD will assist in bank asset restructuring, support healthy banks with medium term funding for the real sector, and help build up alternative funding channels. Progress with balance sheet cleansing and credible commitment to governance reform in the banking sector will open up opportunities for providing support for the privatisation of state-controlled banks.

Supporting sustainable energy. The EBRD will explore sustainable energy and resource efficiency investment opportunities, particularly in the SME sector and the residential sector. The Bank will also actively seek opportunities to identify and finance investments that would increase the renewable energy generation capacity in the country.

The EBRD’s latest strategy for Slovenia was adopted on 26 February 2014

Current EBRD forecast for Slovenia’s real GDP growth in 2017 4.0%

Current EBRD forecast for Slovenia’s real GDP growth in 2018 2.9%

Slovenia’s growth has surprised on the upside in 2017, and is projected to reach 4 per cent, which is 0.9 percentage points higher than a year before and 1.5 percentage points above the projection published in May. The growth is being led by domestic demand, which benefits from strong consumption momentum and strong recovery in investments with the start of the new EU funding cycle. The contribution of net exports is likely to be negligible, as imports and exports should keep rising on the back of higher domestic and favourable external demand, respectively.

Growth is expected to slow down to 2.9 per cent in 2018, still led by domestic demand. Risks to the projection relate to high corporate over-indebtedness, and the slow pace of business environment reforms and privatisation.