At the heart of Europe, Slovenia is a unique combination of culture, natural wonders, stable governance, and future-oriented economic thinking. 2022 saw the country elect a new prime minister, with Robert Golob focusing his priorities on a green economic transformation, attractive investment climate and digital integration. This vision could see GDP growth accelerate from 1.1% in 2023, to 2.3% in 2024 and 3% in 2025. His transformative goals align closely with EU ambitions to build a green, innovative, digitally transformed economy that prioritizes health and wellbeing.
With Moody’s affirming Slovenia at A3 investment grade, the country remains a strong and stable investment destination for FDI. Placed 16th in the world for digital integration, Slovenia counts among the global leaders in robotics, AI and big data usage in its economy. Slovenia is proactively taking all the right steps to build a green, future-ready economy.
Though Slovenia itself may represent a smaller domestic market, the opportunities it represents should be considered by taking neighbouring countries in consideration as well. Indeed, the country’s location as a hub between Central Europe and the Balkans is one of the reasons why Slovenia’s visibility is being reinforced on the American market, as shown during the April 2022 Texas Feels Slovenia business conference. The combined investment of U.S. companies and subsidiaries totalled close to $1.5 billion in 2019, placing the U.S. as Slovenia’s fourth largest source of direct and indirect investment, with manufacturing the largest recipient of those, at 34.6%. With excellent infrastructure, a well-educated workforce, and proximity to European transportation hubs, Slovenia is consolidating its brand as a smart investment decision.
The Slovenian Development Strategy 2030 has set the country’s aims to green its growth model and provide a healthy lifestyle to its inhabitants. This starts with a smart management of its territory, 58.2% of which is covered by forests. Agricultural standards have also been set to minimize resource use and gain efficiency. This translates into a target value of 24% of utilised agricultural land by 2030, from 23.7% in 2016, well below the 2013 European average (40%). Meanwhile, Slovenia has managed to create a balanced energy mix by maximizing available resources. With around a third of its energy capacity coming from hydroelectric sources, the country is future-proofing its growth strategy with reliable energy.
Slovenia’s industrial environment has been empowering the country’s geostrategic position, which successive governments have tapped into to make the country a logistics node in the region. Slovenia boasts a strong manufacturing sector, supplying industries with high-quality products across the EU. In addition, with over 3,000 companies employing more than 20,000 people, Slovenia’s ICT sector present numerous opportunities for partnerships, from cybersecurity to cloud computing and e-banking, among others. With an estimated market size just under $665 million in 2021, the sector has been actively contributing to the country’s growth. Space tech represents another segment with strong prospects, as Slovenia is well on its way to become a full member of the European Space Agency. The country’s industrial and technological vibrancy surely backs that bid.
According to the UNESCO Science Report 2021, total investment in R&D in Slovenia typically represents 2% of GDP, on par with Nordic countries. This explains why Slovenia’s innovation ecosystem is very competitive today. The country’s top scientific research center, the Jožef Stefan Institute, hosts close to 1,000 researchers and is one of the most prominent scientific institutions in Central and Eastern Europe. As a result, the electro industry is one of the most significant branches of Slovenian industry, exporting products worldwide and representing over $6.5 billion in revenue in 2021. With the country outpacing all of its neighbors on the OECD’s PISA rankings, Slovenia’s has all the tools to back this ecosystem.
The Alpine republic’s growth model takes its roots in the preservation of its natural beauty and its rich heritage. Elected the world’s most sustainable country in 2017 by the National Geographic magazine, the country has made sure to back up its 2050 net-zero strategy with facts. This also goes for the tourism sector, which in 2019 represented around $2.6 billion. Today, 13% of the national territory is registered as protected areas and the government has instituted a number of labels rewarding sustainable businesses in the sector. Lessons from the past years have also been taken into account, and the country is increasingly turning to a more boutique tourism offer, a segment where Slovenia has great potential.