Economy

Prior to its independence, Slovenia was the most prosperous of the six Yugoslav republics. The period 1991-1992 was marked by a decline in GDP and rampant inflation, but since 1993 the country’s advantageous geographical location in Central Europe, excellent infrastructure and changes in government policy have brought economic recovery and rapid expansion.
Gross domestic product since 1998, per capita in Euros, was: 9,463 (1998); 10,194 (1999); 10,543 (2000); 11,094 (2001); 11,866 (2002); 12,461 (2003); 13,146 (2004); 13,807 (2005); and 14,811 (2006 - 5.2 per cent real growth). Inflation in 2006 (annual average) stood at 2.5 per cent.
Services are the most important element of GDP structure, accounting for 60 per cent of GDP, while 31 per cent of GDP is generated by industry, 6 per cent by construction and 3 per cent by agriculture.
Slovenia has been successful in its transition to a market economy and currently ranks among the countries with the lowest degree of risk. The Slovene economy has become more and more closely linked to those of European partners and competitors. In 2006 Slovenia generated as much as 69 per cent of the total value of exports and 81 per cent of the total value of imports with other EU countries. In terms of development and purchasing power, in 2006 Slovenia stood at 82 per cent of the EU-25 average, which places Slovenia at the top of the new accession countries. Since 2003 Slovenia has further narrowed the development gap to the EU-25 by more than four percentage points. The other countries closest to the Slovene level of GDP per capita in PPS are Greece (84 per cent of the EU-25 average), Cyprus (89 per cent of the EU-25 average) and the Czech Republic (74 per cent of the EU-25 average).
In August 2007 the active working population numbered 854,585 employed. From January to August 2007 there were on average 72,887 unemployed persons registered at the Employment Service of Slovenia, 18 per cent less than in the previous year. In the second quarter of 2007 the unemployment rate stood 4.6 per cent (3.6 per cent for men and 5.8 per cent for women). In 2006 the rate of unemployment according to the ILO was 6 per cent.
The Slovene economy is export-oriented, and about half of exports are created by small and micro companies. Two thirds of exports go to EU member states, key trading partners being Germany, Italy, Austria, France and Croatia. The exports of goods and services in 2006 came to €16.7 billion, while the imports stood at €18.3 billion.
Slovenia met macroeconomic and fiscal criteria to belong to the Eurozone and accordingly switched over to the common European currency on 1 January 2007 with an exchange rate of 239.640 Tolars to the Euro, becoming the 13th member of the Eurozone and the first of the ten 2004 EU newcomers to adopt the Euro.
For more details consult the website http://www.evro.si/en.