What is the Currency of Slovenia?
Slovenia is a member of the European Union and has a steady economy. The official currency of the country is the euro, which was adopted in 2007 to replace the Slovenian tolar. The tolar was divided into 100 subunits known as cents or stotinov and its ISO Code is SIT. It was introduced in Slovenia in 1991 to replace the Yugoslav dinar at parity. Before the tolar was recalled, its rate of inflation was valued at 0.80%. The rate of inflation in the country as of June 2017 based on consumer price index was 0.92%.
The country had a flourishing economy even before it became an independent state and of all the Yugoslav member states, Slovenia led in productivity. It has strong trade ties with the west and it is a member of various trade organisations. Slovenia was badly affected by the economic recession of 2000 and in 2009 it recorded the largest slump when its per capita GDP fell by 7.9%. The economy recovered slowly between 2009 and 2013 and since 2014 it has been rising steadily. Increase in exports and local consumption are the main catalysts of economic growth.
The nominal GDP of Slovenia in 2017 stands at $43.503 billion while the GDP (PPP) is $69.358 billion. The country recorded a positive growth of 5.3% in GDP during the first quarter of 2017. The service industry is the main income generating sector in the country, while construction and industries comprise almost 25% of the country’s GDP. As of 2017, the country had a labour force of about 964,000 people and an unemployment rate of 7.1%. The largest employers in Slovenia in 2009 were the service industry which employed about 62.8% of the population followed by industries which comprised about 35% of the labour force while 2.2% worked in the agricultural sector.
Slovenia’s trade partners are chiefly members of the European Union, mostly Germany, Italy, France and Austria. Foreign trade is one of the centrepieces of its economy, with exports and imports being equal to 120% of its GDP. The country exports manufactured goods, transport equipment and machinery, food and chemicals while its main imports are machinery and transport paraphernalia, processed goods, lubricants and fuels, food and chemicals. The nation is ranked 30th in the world according to ease of doing business.
In 2012, the country’s foreign direct investment stock was $17.91 billion. In the year 2013, foreign investments comprised 24.7% of the country’s GDP and the figure increased by 13.9% in 2014. Countries with major investments in the nation are Austria, Switzerland, Germany, Italy and Croatia. The sectors that mostly attract foreign investors are manufacturing as well as business and financial consultancy. The highly qualified workforce, ready markets, the geographical location of Slovenia and the production of high quality export goods are some of the factors that attract foreign companies to invest in the country. Some of the major challenges for foreign investors in Slovenia include unstructured tender processes, inconsistent levies and ambiguity in commercial and economic decision making.