GDP (Million $) – 68.108 (2023, IMF)
GDP Per Capita ( $ ) – 32.215
Growth Rate ( % ) – 1,62
Population – 2.114.000
Total Area (km2) – 20.273
Capital – Ljubliana
Slovenia is a country located in the south of Central Europe. Italy to the west; the Adriatic Sea to the southwest; It is bordered by Croatia to the south and east, Hungary to the northeast and Austria to the north.
Once part of the Socialist Federal Republic of Yugoslavia, Slovenia declared its independence in 1991. With its accession to the European Union on May 1, 2004, it was the first country to enter the European Union from the disintegrated Yugoslavia.
According to the IMF, the population of Slovenia, which ranks 143rd in the world with 2.11 million people in 2023, is estimated to be 2.11 million people in 2028. According to the data of the Slovenian Statistical Institute, the population of Slovenia is 2,116,972 as of January 1, 2022. In 2022, the population increased by about 9,800 people.
Slovenia's most important underground resources are lignite, iron, zinc, and mercury. In the eastern part of the country, agricultural activity is at the forefront in the plains irrigated by the Sava and Drava rivers. The only gateway to the sea in the country is the port of the city of Koper.
The economy of Slovenia, a small market with a population of 2 million, is largely based on foreign trade. For this reason, it is easily affected by international price and currency fluctuations and changes in the economic conditions of its trading partner countries.
Slovenia has a large industrial sector covering 33% of GDP. The country's automotive and pharmaceutical industries are well integrated with those of Germany and Italy. The tourism sector (10% of GDP) has been adversely affected by the global Covid-19 pandemic.
Slovenia has moved up two places to 13th place in the European innovation rankings. According to the Slovenian Ministry of Economic Development and Technology, the country has reached 93.5% of the EU average in this area. In addition, Slovenia recently moved up two places to 11th place in the EU's Digital Economy and Society index, rising above the EU average in this area.
According to IMF data, GDP, which is estimated to be 68.1 billion dollars in 2023 according to current prices, is expected to be 72.1 billion dollars in 2024. As of 2023, Slovenia is the 85th largest economy in the world among 196 countries.
INDUSTRY
Even 40 years ago, Slovenian industry was able to produce sophisticated equipment and undertake projects of great international importance. Even after the collapse of Yugoslavia and the shrinkage of the domestic market, Slovenian industrial facilities have easily found customers in foreign markets and adapted to new conditions thanks to their quality production and innovative approach.
Slovenia still has a strong and diversified manufacturing industry and its main important sectors are; automotive, electrical and electronics industry, pharmaceutical-chemical industry, metal processing industry, paper and paper products.
In 2022, the total annual value of industrial production was 1.7% higher than the previous year; It was 18.8% higher in mining and quarrying, 4.1% higher in manufacturing, and 26.4% lower in electricity, gas, steam and air conditioning supply.
Slovenia is a country that can bring innovations in industrial production and set standards in production as a result of its quality workforce and solid education system.
However, motor vehicles have been the most important industrial products in terms of production value sold in recent years. Low activity in the European automobile industry, combined with post-Covid supply shortages, has started to affect industries linked to the manufacture of motor vehicles and some intermediate goods, with significant decreases in the production of these products.
The most important challenge of the country in terms of the manufacturing sector is that it is in a disadvantageous position in terms of self-sufficiency in terms of raw material supply. On average, Slovenia imports 70% of the raw materials consumed domestically. Since they use imported materials to produce their high-tech products, the international competitiveness of the economy is also affected by this import dependency. In addition, three-quarters of industrial products produced in Slovenia are sold in foreign markets, which increases vulnerability to external demand shocks.
The manufacturing industry is one of the largest and most exported sectors in the country, as well as one of the largest consumers of imports and a high proportion of materials, water and energy, and one of the largest producers of waste. Slovenia has adopted an action plan for the transition to a green and circular economy for the manufacturing industry.
On the other hand, Slovenia, which focuses on high value-added products in industrial production, aims to attract hi-tech investments to the country and to intensify industrial production in this area.
AUTOMOTIVE INDUSTRY
Not a single car is produced in Europe without at least one component being made in Slovenia. This includes the most prestigious brands like Rolls Royce, Bugatti and Ferrari, popular ones like Volkswagen, and everything in between. The Slovenian automotive industry makes up 20 percent of total Slovenian exports, and contributes 10 percent to the country's GDP. And one quarter of the best innovations according to national selections. The business orientation of this wide and flexible network of Slovenian automotive suppliers is best described with the verbs “to connect” and “to cooperate”. These companies are completely adapted to the needs of the European automotive industry. And as trusted partners of major car manufacturers, they are highly involved in the quest for future forms of mobility: greener, digital, and human-centric.
Slovenia’s automotive industry is a flexible network of highly specialized niche players. Innovative SMEs are developing systems and components ranging from power drives for electric and hybrid cars to exhaust systems used in GP motorcycles and sport cars. The industry includes everything from component suppliers to end-product manufacturers, including trailers, motorhomes, small cars, and even sport supercars. With several leading players in areas like electromotors and mechatronics, the Slovenian automotive industry can provide sophisticated components and unique solutions like high-torque in-wheel electric drive systems and AI based real traffic simulation solutions.
Slovenia is located close to major car producers in Germany, Italy, Austria and in Central Europe. Its excellent geographical position on the intersection of two pan-European TEN-T corridors is backed up by a well-developed logistics infrastructure; Koper is a major port in the Northern Adriatic. These elements provide for easy integration in supply chains, offering fast delivery, high efficiency, low cost and – finally – lower carbon emissions.
Among the countries to which Slovenia exports the most are Germany (33%), followed by France (14%), Italy (7%), Croatia (6%) and Austria (4%). The most exported products are motor vehicles (60%), parts, accessories for tractors and motor vehicles (15%), silencers and exhaust pipes (3%), trailers and semitrailers of caravaning type (3%) and lighting (1%).
METAL PROCESSING
Metal processing is one of the fastest developing sectors of industry in Slovenia with a high growth of sales and value added. The value added per capita reached by the main players in the industry is among the highest in the field on a global scale.
Slovenia’s steelmakers are among the largest producers of stainless and special purpose steels in Europe. Their products are intended for the most demanding uses in aerospace, oil industry, and machine production. They include premium grade high temperature steels, super hardened steels and alloys, corrosion resistant steels stable in acidic or alkaline environments, or special electric steels used in the magnetic cores of transformers and electric motors.
Apart from high quality steels and aluminum in various forms, the industry also offers a wide array of metal products, from various castings for the automotive industry, to furniture fittings, office equipment, taps, hand tools, containers, kitchen sinks, and prefabricated metal buildings. Slovenian companies are the leading manufacturers of industrial knives for most demanding applications.
The forged precision parts made in Slovenia are used by the top car manufacturers. Slovenian made prefabricated metal buildings, metal facades and roofs are present all over the world. They are used in the buildings of major corporations like Coca Cola, DHL, Nestle, Airbus, and in London’s Heathrow airport.
The metal processing industry in Slovenia is characterized by intensive R&D, innovation, flexibility, quality, and efficiency. The country's leading aluminum producer is, for example, the world leader in low power usage during the electrolytic process and one of the three global leaders in electricity used per ton of produced aluminum. These achievements were made possible only by intensive research and innovation. A high level of standardization does not, however, limit the industry’s flexibility: many Slovenian suppliers in the metal industry are able to offer tailor made products closely matched to the needs of their customers.
MACHINERY INDUSTRY
A strong metal industry is the foundation for well-developed machinery and toolmaking fields. Slovenia’s companies develop and produce machinery for various purposes, including metal processing, the food and beverages industry, pharmacy, logistics, woodworking, forestry, and agricultural machinery.
· The turbines made in Slovenia are used in hydroelectric power plants all over the world.
· Thermoplastic injection molding tools, die casting and tools for transforming sheet metal, developed by Slovenian companies are used by some of the leading global automotive companies.
· Slovenia’s companies are among the leaders in specialized forestry equipment like logging cranes and forestry winches especially.
· Slovenian companies offer machinery for the metal processing industry ranging from presses for sheet metal forming and powder materials, to metal cutting machines, special purpose machinery for surface treatment, industrial furnaces, and kilns.
· Other important products include industrial washing machines, various molds, welding tools, lifting and handling equipment, and precision machinery for wood processing.
In the metal processing and machinery industries, Slovenia's top export destinations are Germany (24%), followed by Italy (12%), Austria (10%), Croatia (9%) and Poland (4%).
