By: Vida Kocjan
Slovenia’s economic indicators for 2024 present a mixed picture. According to the Office for Macroeconomic Analysis and Development (Umar), Slovenia’s gross domestic product (GDP) grew by 1.4% year-on-year in the third quarter, largely driven by export activity.
At the same time, compared to other eurozone countries, Slovenia faces challenges such as declining investments, uncertainty in the manufacturing sector, and stagnation in economic sentiment.
Exports grew by 8.4% and remain a key driver of the country’s economic growth. However, the structure of exports is vulnerable, as it relies heavily on the pharmaceutical industry and traditional sectors, reducing resilience to global shocks.
Unemployment is also declining, which could indicate a stable labor market. Nevertheless, the proportion of foreign workers remains high (15.8%), highlighting the need to address the domestic labor shortage.
Meanwhile, a significant drop in investments in fixed assets (-8.2%) hampers long-term economic development. Compared to Austria and Germany, where investments remain stable, this represents a structural weakness in Slovenia’s economy. The manufacturing industry faces additional challenges due to low demand and uncertainty in key export markets.
Public finances are another area of concern. While the fiscal deficit is narrowing, this is mainly due to higher tax burdens, which could negatively impact competitiveness in the long run.
In conclusion, Slovenia requires a more ambitious economic strategy to promote investments in high-tech sectors and reduce dependence on traditional industries. Reforms to increase the domestic workforce, support innovation, and implement more thoughtful fiscal policies could position Slovenia alongside the most successful European economies. However, with the current economic indicators, it is evident that without strategic reforms, Slovenia will struggle to surpass the average growth of the eurozone.