Guidance

Overseas Business Risk: Slovenia

Updated 16 January 2024

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. In 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 105 people per square kilometre, with the highest density in and around Ljubljana. According to the Republic of Slovenia Statistical Office unemployment stands at 3.9% (Q3 2023).

Slovenia adopted the euro in 2007. The Bank of Slovenia supervises Slovenia’s banking system and exchange rates. Annual inflation in December 2023 stood at 4.2% largely due to an increase in prices of food, tobacco, and recreational services. The price of petroleum products decreased, contributing to a monthly deflation rate.

In August 2023, Slovenia suffered from exceptionally heavy flooding that caused major damage to infrastructure and housing (estimated to cost about 5% of GDP), leading to a slight contraction in the third quarter of 2023.

According to the European Commission growth is forecast to reach 1.3% in 2023, accelerating to 2% in 2024 and 2.7% in 2025.  In 2023 subsidies to mitigate the economic and social impact of high energy prices remain at 0.9% of GDP and expenditure on the reconstruction after August 2023 floods is estimated at 0.9% of GDP.

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. GDP per capita (2022) is 27,040 euros.

According to the Slovenian government statistical office  the budget deficit in 2022 amounted to €1,717 million or 3.0% of GDP, while gross debt at the end of 2022 amounted to €41,242 million or 72.3% of GDP.

3. Trade

Slovenia ranks 37 globally on the World Bank’s ease of doing business ranking and 17 in terms of starting a business.

The trade balance for 2023 (January to November) showed a deficit value of €2 billion (more imports than exports). The export-import ratio was 96.2%. Slovenia generated a deficit of €0.2 billion in external trade in goods.

According to the Slovenian statistical office in the first eleven months of 2023, exports amounted to €50.9 billion and imports to €53.0 billion. Exports went up by 4.8% compared to the same period a year before and imports went up by 1.8%.

Exports to other EU countries fell by 9% in 2023 while exports to non-EU countries increased by 24.8%. Key non-EU export countries for Slovenia were Switzerland (66.4% of exports), followed by Serbia (4.4%), Russia (4.1%), Bosnia and Herzegovina (3.7%) and the US (3.0%).

Similarly, the value of imports from EU Member States decreased by 10.2% and imports from EU non-member countries increased by 41.4%. Slovenia imported the most from Switzerland (46.9%), followed by China (18.5%), India (12.0%), Turkey (3.5%) and Saudi Arabia (2.8%).

Total trade with the UK (PDF, 709KB) stood at GBP 1.3 billion in the four quarters to the end of Q2 2023. An increase of 19.7% (or GBP 209 million) to Q2 2022. 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 up to Q2 2023 included power generators, specialised machinery, medicinal and pharmaceutical products, beverages and tobacco and plastics in non-primary form. Goods imported to the UK from Slovenia in 2022 included electrical machinery and goods, telecoms and sound equipment and miscellaneous electrical and manufactured goods.

Services exported from the UK to Slovenia up to Q2 2023 included business, financial, intellectual property, travel, telecommunications, computer and information services. Services imported to the UK from Slovenia included travel, insurance and pensions, government, other business service and manufacturing.

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.

A 2023 United States Department of State report downgraded Slovenia to a Tier 2, concluding that the country does not fully meet the minimum standards for the elimination of trafficking, but is making significant efforts to do so. Recommendations include more vigorous investigation and prosecution of crimes, including tougher penalties and prison terms and more support for victims.

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. Some discrimination exists against the Roma population, although there is a robust legislative framework (PDF, 537KB) for supporting Roma rights in Slovenia.

More information can be found on the human rights and equal opportunities (GOV.SI) and Slovenian Human Rights Ombudsman pages.

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.

In 2022, Slovenia was ranked 41 (down from 35th in 2020) of 180 countries in Transparency International’s corruption perception index (CPI). Low-level bribery is not common in Slovenia.

The Commission for the Prevention of Corruption’s report in 2022 noted breaches of Slovenia’s Integrity and Prevention of Corruption Act including 23 cases of conflicts of interest in public office, and 20 cases of concern around elected officials holding dual positions (mostly in academia). The report also highlighted concerns around a lack of transparency in public procurement and tenders, labour law, asset ownership, public institutions and municipalities and an absence of sanctions against breaches. Disregard for the watchdog’s decisions and recommendations also continues to be a problem.

Slovenia also has a National Bureau of Investigation, which operates as part of the police system, and specialises in economic and financial crime.

For further information read our bribery and corruption page.

6. Terrorism threat

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. Read the information provided on our Protective security advice page.

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.

For information on registering your trademark or patent in Slovenia you should contact the Slovenian Intellectual Property Office (SIPO).

Read the information provided on our intellectual property page.

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.

Read the information on our organised crime page or the Slovenian police website.

10. Useful information

• an export guide to Slovenia
• practical export advice
• export opportunities
• events for exporters and international buyers
• export finance and related guidance

11. Department for Business and Trade

Contact the British Embassy in Ljubljana on info@british-embassy.si for more information and advice on opportunities for doing business in Slovenia.