A small and open economy which is especially exposed to global developments and crises

Like most other small and open economies, Slovenia is very vulnerable to external economic shocks, such as the global financial crisis.

Slovenia has the fourth smallest economy in the OECD (see Figure 1.2). Slovenia’s GDP was USD 56 billion in 2008, twice the size of Estonia and four times smaller than Denmark.

Figure 1.2. Size of GDP in OECD member countries, 2008

Note: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

Source: OECD (2010), OECD Factbook 2010: Economic, Environmental and Social Statistics, OECD Publishing, Paris, http://dx.doi.org/10.1787/factbook-2010-en.

Slovenia also has a very open economy, the ninth most open among OECD member countries in 2008 (see Figure 1.3). International trade in goods and services represented almost 70% of GDP in 2008. Slovenia is more open than countries such as Denmark and Finland, but less open than Estonia and Ireland. As a small and open economy, Slovenia’s economic success is highly dependent on external demand from main trading partners and on internal competitiveness.

These characteristics weighed on Slovenia during the global financial and economic crisis. Despite its success, Slovenia’s frailties were severely exposed. The economy faced the second worst recession among OECD member countries in 2009, when GDP declined by 8% (the OECD average was a 3.4% contraction). The May 2011 OECD Economic Outlook

(OECD, 2011a) shows that the Slovenian economy is recovering from the crisis, supported by external demand and re-stocking. It is expected to gradually gain strength as private investment and consumption improve. Real GDP is expected to grow by 1.8% in 2011 and 2.6% in 2012.

Figure 1.3. International trade of goods and services, 2008

Note: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

Source: OECD Statistical Database.

 
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