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The Economic Activity of Slovenia

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Slovenia is considered to have a high-income developed economy that it enjoyed over the past years. As one of the European Union's newest member it proudly had the highest GDP per capita of $29,521 or about 91% of the EU average in 2008.

Economic success was mainly due to its vigorous political and economic institutions with educated work force. It was cautiously deliberate in achieving economic progress with its economic trade centered on other EU countries mainly France, Austria and Germany with trade equals to 120% of GDP, though highly dependent on foreign trade. Slovenia's economic trade of about two third is with EU members alone thus making them vulnerable to sudden EU economic slowdown. Ironically, it had maintained a steady 3% of its annual GDP growth in two years from 2001.

Domestic firms’ response to global economic competitiveness had shifted its course. Specializing in mid to high technology manufacturing, keeping labor costs in direct proportion with productivity was the key to its current economy. Though successful with its economic management, Slovenia's huge portion of economy directly relies on its foreign domestic investment (FDI) that kept it one of the lowest EU members per capita. In 2000 the country had dismantled its restrictions on foreign direct investment which as expected would increase foreign investors to the present. Banking, telecommunications including public utility sectors privatization were also seen.

Slovenia was the first to adopt the euro in 2007 and stands as European Union's economic front-runner in 2004. It had been classified by the World Bank as one of the high-income group for the year 2006. With stable political and economic environment, Slovenia is one country in Central Europe that sails smoothly on greater economic development and opportunities for potential foreign business upscale atop EU's economic recovery.