The Slovenian economy continued to grow strongly in 2015. Economic output is estimated to have expanded by 2.5 % in 2015, following 3 % in 2014. The rebound, which commenced in 2014, was initially driven by strong export performance supported by improved cost competitiveness. Subsequently, the recovery has become broader-based as private consumption growth has accelerated boosted by an improving labour market, rising consumer confidence and continued low energy prices. Investment in infrastructure projects co-funded by the EU also helped boost growth, while private investment began to show initial signs of recovery. The general government deficit is estimated to have decreased to 2.9 % of GDP in 2015, while the debt-to-GDP ratio is estimated to have increased to 83.5 %.
Slovenia is experiencing macroeconomic imbalances. Weaknesses in the banking sector, corporate indebtedness, and fiscal risks constitute vulnerabilities. The reduction in external liabilities is progressing, the banking sector has stabilised and vulnerabilities in the corporate sector are being addressed through operational and financial restructurings. Deleveraging pressures are easing but still weigh on corporate investment and recovery prospects. The business environment remains hampered by administrative burden. Policy measures have been taken regarding the corporate governance of the "bad bank" and significant progress has been made regarding the governance of state-owned enterprises. Progress on reducing the administrative burden has instead been limited, and the strategy on foreign direct investment has yet to be fully implemented. Further action is needed to put debt on a sustainable downward path.
Read a complete analysis of Slovenia's economy in the country report 2016 [2 MB]
2015 recommendations in brief
The Commission has made four country-specific recommendations to Slovenia to help it improve its economic performance. These are in the areas of: public finances, pensions and health; labour market and wage-setting; financial sector and SMEs; justice system.