Nestled in central Europe,
Slovenia is a country known for its scenic landscapes, hill
resorts, lakes and mountains. The country enjoys a mixed economy and
is mainly based on centralized planning. However, the private sector
enjoys considerable freedom with ample space for
growth and opportunities. Due to its central location well-connected
with major European crossroads, Slovenia has seen a gradual growth in
its economy over the last few decades. Having a highly educated and
well-skilled workforce, two-thirds of the population are employed
in the service industry. Economy Slovenia is a developed economy
and enjoys considerable growth throughout the country and is
considered as a wealthy nation. Though the financial crisis of 2007-10
had a big impact on the country’s economy, Slovenia has since
witnessed a gradual growth leading to a stable
well-developed economy. Though many banks and
institutions were expected to be bailed out by
the European Union, the country’s own funds were
sufficient in recovering the national debts and getting
the nation out of the crisis. There was a shortage of growth in
exports and lack of implementation of economic reforms led to slow growth
from the year 2007 for a few years. However, actions and
legislation that reduced spendings and focused
on improving the economy eventually paid out leading to gradual
growth in the economic output of the nation. Though the construction sector saw a steep
rise in recent times, other industries such as tourism and service sectors witnessed
considerable growth and stabilization. Lying in the midst of various
trade routes, two-thirds of the Slovenians belong
to the service industries. Though highly-skilled and
well-educated, the productivity levels still lie below the
average numbers from the EU. This has seen Slovenians
losing many contracts and labor to other countries such as
China, India, among others. Trade Slovenia majorly trades
with other EU countries. Due to this, the nation
is highly sensitive to economic changes and conditions
in the European Union. The bulk of the economic
growth of the nation is a direct result from
foreign trade relations. The main challenge is
to keep the labor costs in line with
productivity and demands. Though there was a slowdown in growth in the
early years of the 21st century, there has been a gradual change since then leading
to the considerable growth of the economy. Slovenians are experienced to
low to mid-level manufacturing firms are majorly employed
in the service industry. Foreign direct investment levels are
one of the lowest in the country. However, this has also
seen a gradual change and improvement showing a positive
impact in the economy. Performance The traditional industries of agriculture,
forestry and fishing employ only 6% of the population and do not have
a considerable impact on the economy. The nation relies on foreign
trade relations, deals and tourism sectors as major
contributors to the economy. Though inflation levels in the country are
on the lower side considering the global average, the anti-inflation policies relies
heavily on capital inflow restrictions. As a nation, though it was impacted
heavily by recession and crisis, Slovenia has picked up the pace and has today
become a well-developed economy.

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