In Slovenia we focus on:
Boosting competitiveness and good governance by championing privatisations, while deploying cutting-edge instruments to support private companies. We will support the expansion of competitive and well-governed companies. We aim to deepen capital markets and strengthen financial system.
Supporting Green Economy Transition by promoting new green technologies. Our goal is to Improve energy and resource efficiency and reduce CO2 emissions.
Slovenia is one of the most advanced countries within the EBRD regions. The country is highly competitive and has many vibrant small businesses, but there remains room for improvement in innovation, governance and energy intensity.
While the economy has registered steady growth in recent years, the medium-term outlook will depend on the continuation of structural reforms. Reviving private sector productivity growth is key to the further convergence of the Slovenian economy.
The EBRD country strategy for Slovenia is also aligned with the government’s Slovenia Development Strategy 2030 especially in the areas of privatisation, corporate governance, capital market development, green economy, innovation and entrepreneurship.
The EBRD’s latest strategy for Slovenia was adopted on 10 February 2019
Current EBRD forecast for Slovenia’s real GDP growth in 2018 4.2%
Current EBRD forecast for Slovenia’s real GDP growth in 2019 3.3%
The economy continued to expand strongly in the first half of 2018 (by 4.2 per cent year-on-year), although a bit slower than in 2017 (4.9 per cent). The growth was driven by domestic demand, underpinned by both higher investment and private consumption. While export performance remained strong, imports continued to catch up. Stronger growth led to a fall in the unemployment rate to below 6.0 per cent in the first half of 2018 and to labour shortages becoming more prevalent.
This year Slovenia has exited the Macroeconomic Imbalances Procedure and the improvement in the general government balance has continued. However, public debt remains high at 73 per cent of GDP (end-June 2018), and there is a need for structural reforms in areas such as a sustainable public wage system motivating employees, and also in others linked to the ageing of the society, including pensions, health care, long-term care and education (especially life-long learning).
Economic growth is likely to moderate in the short term, to 4.2 per cent in 2018 and 3.3 per cent in 2019, as the temporary effects of the new EU funding cycle subside and the economy reaches its potential. While downside risks come from possibly weaker demand from Slovenia’s main trading partners, as well as slow pace of structural reforms and privatisation, a stronger than envisaged government investment cycle and growth in private consumption could push up growth rates above projections.