Overseas business risk for Slovenia

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Information on key security and political risks which UK businesses may face when operating in Slovenia.

1.Political

The Republic of Slovenia is a parliamentary republic with a multi-party system, governed by a coalition government. The parliament consists of two chambers: the National Assembly, consisting of 90 members, and the National Council, consisting of 40 members. The majority of power lies with the National Assembly. The National Council represents social, economic, professional and local interest groups, and plays an advisory role only. A centre-left coalition government has been in power since 2022.

Slovenia has been a member of NATO since March 2004 and the European Union since May 2004, and hosts the EU’s energy agency ACER. It is also a member of the Organisation for Security and Cooperation in Europe (OSCE), the Organisation of Economic Development (OECD), the Council of Europe, and is on the executive board of the World Health Organisation and the International Atomic Energy Agency. From 2024 to 2025 Slovenia will be a non-permanent member of the UN Security Council.

2.Economic

There are 2.1 million inhabitants in Slovenia (2023). Population density is 104 people per square kilometre, with the highest density in and around Ljubljana. According to the Republic of Slovenia Statistical Office unemployment stands at 3.8% (June 2023).

Slovenia adopted the euro in 2007. The Bank of Slovenia supervises Slovenia’s banking system and exchange rates. Annual inflation in May 2023 stood at 8.4% largely due to an increase in prices of food, tobacco, recreational services and electricity.

Slovenia’s fiscal policy is expected to be expansionary in 2023 but tighten in 2024. An OECD economic survey (July 2022) highlights the need for Slovenia to lower labour taxes for low-income workers to help stimulate growth, review state owned enterprises to encourage more competition and to reform its pension system to deal with an ageing demographic. Slovenia’s economy expanded more than expected in the last quarter of 2022 due to private consumption and government spending. The OECD expects Slovenia’s Gross Domestic Product (GDP) growth to slow to 1.5% in 2023 due to weak domestic and external demand, and increase to 2.6% in 2024 as external demand recovers and headline inflation recedes. GDP per capita (2022) is27,975 euros.

In 2022 the budget deficit stood at 3% of GDP and government debt was 69.9% of GDP (at 4 billion euros). This is down compared to 2021, when there was a budget deficit of 5.2% of GDP and government debt stood at 74.7% of GDP.

3.Trade

Slovenia ranks 37 on the World Bank’s ease of doing business ranking and 41 in terms of starting a business.

The trade balance in the first four months of 2023 showed adeficit of EUR 399,831 (more imports than exports), nearly a 98% alignment between the level of imports and exports.

Exports account for 91% of the country’s GDP. In 2022, Slovenia’s export and import figures rose from an already high base. Trade with other EU countries accounts for more than three-quarters of trade: 76% of all exports and 86% of all imports. Germany, Italy, Croatia, Austria and France are the country’s key trading partners.

In April 2023, Slovenia’s merchandise exports declined by 5.8% year-on-year to EUR 3.9 billion, the sharpest decline since October 2022. Imports dropped by 12.6% to EUR 4.1 billion. Exports to EU countries contracted for the first time since September 2018, dropping by 4.4%. Imports from EU countries were down by 8.9%. Trade with non-EU countries was slower as well with exports dropping by 6.7% and imports down 15.2%.

Total trade with the UK stood at GBP 1.2 billion in 2022 an increase of 37% (or GBP 326 million) from 2021. In 2021, the inward stock of foreign direct investment (FDI) in the UK from Slovenia was £5 million. The outward stock of foreign direct investment (FDI) from the UK in Slovenia is not available due to data disclosure.

Goods exported from the UK to Slovenia in 2022 included cars, power generators, specialised machinery, medicinal and pharmaceutical products. Goods imported to the UK from Slovenia in 2022 included electrical machinery and goods, telecoms and sound equipment and miscellaneous electrical and metal goods.

Services exported from the UK to Slovenia in 2022 included business services, intellectual property, telecommunications, computer and information services, travel and transportation. Service imported to the UK from Slovenia in 2022 included construction, transportation, business services, government, insurance and pension services.

4.Human rights

Slovenia is signatory of the European Convention on Human Rights, which has been incorporated into domestic legislation. Slovenia is a signatory to all International Labour Organisation (ILO) conventions on labour rights. Trades Unions are active in all sectors and the Slovene Government regularly engages in dialogue with the unions and other ‘social partners’ on changes to legislation that might affect workers’ rights or terms and conditions.

According to the United States Department of State reporting, the government of Slovenia fully meets the minimum standards for the elimination of trafficking.

Discrimination on the grounds of gender, age or sexuality is illegal under Slovenian law. Human rights and fundamental freedoms are defined in the Constitution. Women and minority groups have equal access to education and employment rights.

5.Bribery and corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

6.Terrorism threat

There is a low threat from terrorism.

Read the latest travel advice for Slovenia on the Foreign, Commonwealth & Development Office website. You can find further information on our terrorism threat page.

7.Protective security advice

Crime rates in Slovenia are very low compared to most parts of Europe. The Slovenian Police website lists all registered criminal cases.

8.Intellectual property

Intellectual property rights are territorial, that is they only give protection in the countries where they are granted or registered. If you are thinking about trading internationally, you should consider registering your IP rights in your export markets.

9.Organised crime

Some organised crime exists in Slovenia. Businesses and individuals unconnected with such groups have not been specifically targeted by serious organised crime. Businesses should always check the background of any potential partners, and be aware of the potential for online fraud.

gov.uk