Slovenia’s macro fiscal context
Slovenia has enjoyed successful economic development, but its economic and fiscal outlook has become worrying, urging calls for further fiscal consolidation. Against the backdrop of fiscal tightening, the Slovenian public administration is being asked to increase the efficiency and effectiveness of its operations. This chapter sets the macro fiscal context, which is important to provide context for the salary system reform and its contribution to fiscal consolidation.
An economy which has, overall, developed successfully
Since gaining independence in 1992, Slovenia has made a successful transition to an advanced economy. In 1995, Slovenia’s gross national income per person equalled 67% of the OECD average. Thirteen years later, Slovenia’s resilient efforts to catch up with other OECD member countries were rewarded by a 14 percentage point increase in GNI per person, representing 80% of the OECD average in 2008. Slovenia’s economy was the sixth fastest growing in the OECD between 2000 and 2008, averaging a 4.4% growth of real GDP per year, compared to an OECD average of 3%.
Figure 1.1.Real GDP growth, 2000-2012
Source: OECD (2011), “OECD Economic Outlook No. 89”, OECD Economic Outlook: Statistics and Projections (database), Vol. 2011/1, OECD Publishing, Paris.