Products and solutions from Slovenia

BusinessSouth-East European INDUSTRIAL Мarket - issue 6/2007

Part One of Serie of Publications:

A Positive Business Climate

Slovenia continues to bring about its vision of a successful, internationally competitive, flexible and dynamic economy; the vision of a country of educated and motivated people who contribute to overall growth and, by way of this, to prosperity and social harmony.

Entering the euro zone in 2007 was the single most important step in Slovenia becoming a modern, advanced and competitive European economy since its EU accession in 2004.

It also became the first new member state to introduce the euro, as well as the thirteenth country to adopt the currency.

According to the Eurostat’s November 2007 calculations, Slovenia has achieved 88.5 percent of the EU 27 average GDP per capita in purchasing power parity, and is thus ranked in the first half among the EU 27 as regards this standard measure.

An Open Trade-Oriented Economy

Slovenia’s economy flourished in the run-up to the adoption of the euro. During 2006 the economy grew by 5.7 percent in real terms, a record only surpassed in 1999. Along with the impressive build-up of investments and moderate private consumption, exports were the major impetus to GDP growth. Very positive trends in the economies of Slovenia’s trading partners were reflected in the strong growth of goods and services exports, which reached over 13 percent in real terms. This robust increase in GDP, fuelled by exports and heightened investment activities, has continued into 2007. For the whole 2007 5.9-percentage growth is to expect, along with advantageous international environment. In domestic demand investments are the most dynamic component, especially due to strong growth in construction, some large new equipment investment in energy sector and small businesses investments. In the year 2007 14-percentage growth of investments can be expected and some 8 percent in 2008. In line with some less favourable economic climate in European trading partner countries 4.6-percentage GDP growth for 2008 is forecast.

Slovenia’s exports of goods and services account for close to 70% of total GDP, by way of which this country has earned a reputation as an open, competitive economy. In line with the economic upturn across the European Union, and favourable international trends, Slovenia’s exports of goods and services are to increase by 13 percent in real terms in 2007. Services exports are growing faster compared to goods trade. The major part was a consequence of the buoyant tourism and transport sectors that respectively accounted for 45% and 30% of total invisible exports. High export and import growth is forecast to continue throughout 2008, export at around 9%, with imports lagging a little way behind. The index of openness, expressed as the proportion of exports and imports in relation to GDP rose to 145 in the last period.

As in previous years, Slovenia’s most important trading partners also in 2007 remain its EU ones, accounting for 71% of total exports and 78% of all imports. Exports of goods also increased on these markets, mainly thanks to strong sales to the traditional trading countries as Germany, Italy, France, Austria and Great Britain.

Further positive trends in trade with the new member states continued. Among non-EU markets, exports to the CIS region accelerated most, though positive trends were also recorded as regards Norway, and other countries further a field, such as the USA, Australia, China, India, Japan, Argentina and Chile. Exports to Serbia also strengthened, as did those to Croatia.

Chamber of Commerce and Industry of Slovenia

Part One of Serie of Publications:

A Positive Business Climate

Slovenia continues to bring about its vision of a successful, internationally competitive, flexible and dynamic economy; the vision of a country of educated and motivated people who contribute to overall growth and, by way of this, to prosperity and social harmony.

Entering the euro zone in 2007 was the single most important step in Slovenia becoming a modern, advanced and competitive European economy since its EU accession in 2004.

It also became the first new member state to introduce the euro, as well as the thirteenth country to adopt the currency.

According to the Eurostat’s November 2007 calculations, Slovenia has achieved 88.5 percent of the EU 27 average GDP per capita in purchasing power parity, and is thus ranked in the first half among the EU 27 as regards this standard measure.

An Open Trade-Oriented Economy

Slovenia’s economy flourished in the run-up to the adoption of the euro. During 2006 the economy grew by 5.7 percent in real terms, a record only surpassed in 1999. Along with the impressive build-up of investments and moderate private consumption, exports were the major impetus to GDP growth. Very positive trends in the economies of Slovenia’s trading partners were reflected in the strong growth of goods and services exports, which reached over 13 percent in real terms. This robust increase in GDP, fuelled by exports and heightened investment activities, has continued into 2007. For the whole 2007 5.9-percentage growth is to expect, along with advantageous international environment. In domestic demand investments are the most dynamic component, especially due to strong growth in construction, some large new equipment investment in energy sector and small businesses investments. In the year 2007 14-percentage growth of investments can be expected and some 8 percent in 2008. In line with some less favourable economic climate in European trading partner countries 4.6-percentage GDP growth for 2008 is forecast.

Slovenia’s exports of goods and services account for close to 70% of total GDP, by way of which this country has earned a reputation as an open, competitive economy. In line with the economic upturn across the European Union, and favourable international trends, Slovenia’s exports of goods and services are to increase by 13 percent in real terms in 2007. Services exports are growing faster compared to goods trade. The major part was a consequence of the buoyant tourism and transport sectors that respectively accounted for 45% and 30% of total invisible exports. High export and import growth is forecast to continue throughout 2008, export at around 9%, with imports lagging a little way behind. The index of openness, expressed as the proportion of exports and imports in relation to GDP rose to 145 in the last period.

As in previous years, Slovenia’s most important trading partners also in 2007 remain its EU ones, accounting for 71% of total exports and 78% of all imports. Exports of goods also increased on these markets, mainly thanks to strong sales to the traditional trading countries as Germany, Italy, France, Austria and Great Britain.

Further positive trends in trade with the new member states continued. Among non-EU markets, exports to the CIS region accelerated most, though positive trends were also recorded as regards Norway, and other countries further a field, such as the USA, Australia, China, India, Japan, Argentina and Chile. Exports to Serbia also strengthened, as did those to Croatia.

Chamber of Commerce and Industry of Slovenia




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