Successfully investing in Slovenia

Gross domestic product in Slovenia in 2022 increased by 5.4 percent compared to the previous year, due to the good development in the first half of 2022, in which real gross domestic product, compared to the first half of 2021, increased by 9.4 percent. 

The reasons behind such an increase are numerous, however there are three that stand out: goods export, which was on the constant increase until Q3/2022 (and had its peak precisely in Q3, when it went up by 11.9 percent compared to 2021); private consumption, which peaked in Q1 with an increase of 20.4 percent com­pared to the year before, and the strong post-covid recovery.

However, in later quarters of 2022, the economic situation in Slovenia cooled down – import and export turned negative in Q4. Private consumption and gross fixed capital formation also continued to fall during these quar­ters, to the point where they were only 2.6 percent and 5.9 percent higher respectively compared to the year be­fore. Such a turn of events was primarily the consequence of the most important EU trading partners’ weaker economy caused by the war in the Ukraine

At the moment (March 2023) Slovenia has an inflation rate of 10.5 percent, which is mainly due to rising prices for electricity, petroleum products and food. The unemployment rate is historically low – currently only 3.5 per­cent, i.e. at its lowest rate in the last 30 years.

The investment climate is currently gloomy, particularly due to the war in the Ukraine and the general economic slowdown, as companies are less willing to invest. In addition, government investments have somewhat slowed down due to the consolidation of public finances, although they remain high. In 2023, government investments will amount to around EUR 2.24 billion.

Private investments are also largely spurred on by state subsidy programmes, particularly in the sectors of su­stain­able development, environmental policy and health. As in previous years, the green energy industry, su­stain­able agriculture and digitalisation will continue to be promoted. In addition, larger investments in waste and recycling management, e-mobility and housing are planned.