PMR Research is a specialised custom market research unit of PMR Ltd., a British-American company based in Poland. We offer a wide range of research services in Central and Eastern Europe for companies interested in business over the countries in the region.
Research services provided by PMR Research in Slovenia include:
- brand and company image studies
- research on customer preferences, their satisfaction and their purchasing habits
- product concept tests
- usage & attitude studies
- internet surveys
- quantitative surveys - telephone, CATI, face-to-face
- qualitative research - focus groups, IDIs
- industry analyses (comprehensive analyses of given market sectors performed using PMR's proprietary methodology PMR MarketInsight)
- preparation of databases
- fieldwork services
| Why to invest? |
- EU member state
- First country in the region that has introduced the Euro (2007)
- Highest GDP per capita in the region
- Strong industrial traditions
- Collapse of Yugoslavia had much smaller consequences for Slovenia than for other republics
- Dynamic development in recent years
- High level of investment in infrastructure
- High integration with the economies of Austria and Italy
|
Business and economical environment
Even during communist times, Slovenia was an exceptional place with its economy that was relatively open to the West and its developed industry - no wonder it has done well after its declaration of independence from Yugoslavia. Currently the richest among the CEE countries in terms of the GDP per capita and with plenty of strong local players, especially in the pharmaceutical industry, it is not only attracting investments but also exporting capital.
Being the first of the CEE members of the EU (since 2004) to fully adopt the Euro in 2007 creates no currency risk for investors from the Eurozone and it is no wonder given how integrated it is with the Austrian, German and Italian economies. Key sectors that will be attractive for foreign investors include the automotive, chemical, pharmaceutical, electronics and electrical, ICT, machine manufacturing, metal working, R&D as well as tourism sectors. Slovenia also offers favourable conditions in terms of logistics as it combines well developed road links with neighbouring countries and an Adriatic port being a gate to all the Mediterranean and beyond. One of the country’s drawbacks is a high rate of corporate income tax that amounts to 22% and is the highest in the region. Its rich society enjoying high living standards also means the highest average salaries in the region. Slovenia is a member of Eurozone since beginning of the 2007 when its currency Toljar has been replaced by the Euro.
The Slovenian economy has grown by 3.5% in 2008 what was much lower than the GDP growth rates recorded for the other countries of the Central Eastern Europe. This should be explained by the fact that Slovenia is much further in transition of its economy than the other countries of the region and due to this growth rates are much closer to those recorded in the Western Europe. However, this has not prevented Slovenia from the strong GDP increases of 2006 (5.9%) and 2007 (6.8%). The GDP per capita has recorded EUR 18,370 in 2008 compared with EUR 17,170 in 2007. Forecasts for 2009 are much less optimistic as the Slovenian GDP is expected to fall by 2.1% with recovery coming to earlier than in 2010 when 0.7% rate is expected.
Value of exports from Slovenia in the 2008 has reached EUR 19.79bn what was an increase by 3.3% compared with 2007, while in terms of imports their value reached EUR 23bn, an increase by 3.5% on the previous year. Foreign direct investment level in Slovenia recorded FDI level in EUR 9.54bn in 2007 what compared with the previous year reflected a surge by 40% compared with 2006 level of EUR 6.82bn. What is interesting Slovenia has much worse results in terms of net FDI which recorded EUR -0.3bn in 2007 and EUR 0.3bn in 2007. This has been caused by the fact that Slovenian companies are actively investing abroad.
The rate of unemployment in Slovenia in 2008 has reached 4.5% and is forecasted to increase slightly to the level of 5.8% in 2009 and 6.2% in 2010. This will mean the reversing of the downward trend recorded in the previous years.
In terms of the inflation rate Slovenia has faced an increase in 2008 as the recorded value was 5.7% compared with 3.6% in 2007. Values forecasted for the following years amount at 1.1% and 1.9% in 2009 and 2010 respectively.
In terms of workforce remuneration Slovenia has reached the highest average monthly wages across the region which for 2008 has amounted at EUR 1,391, what was an increase on 2007 when EUR 1,284 was recorded. However, the wage increase in the coming years of 2009 and 2010 will slow down significantly.
Social environment
The population of the Slovenia as of July 2008 has amounted to 2mn inhabitants making it the 23
rd country of the EU by population. The average age in 2007 has been recorded at 41.4, however, it differs for men and women reaching 39.8 for men and 42.9 for women. In the Slovenian society the number of women outnumbers men by 5%. The population of Slovenia consists mostly of Slovenians making 83.1% of all inhabitants. The other major ethnic groups include Serbs (2%), Croats (1.8%) and Bosniaks (1.1%). While education is concerned Slovenia has a well developed infrastructure in this terms and 6% of all the inhabitants in the 2006/2007 school year were in tertiary education. Those Slovenes who declare affiliation with religious group declare being Catholic 57.8%, Muslim 2.4%, Orthodox 2.3%, other Christian 0.9%, unaffiliated 3.5%. Simultaneously 33.1% of people declare their denomination as none, other or unspecified. Slovenia has also a small but positive net migration rate at 0.64 at 1,000 inhabitants.
Transparency International in its corruption perception study has ranked Slovenia 26
th in 2008 with CPI (Corruption Perception Index) of 6.7 being the highest across the Central Eastern Europe and 10
th result within the European Union countries. The ratio has faced a slight increase compared with the year ago when it was recorded at 6.6.
Infrastructure and technological environment
Slovenia with its long time experience in such branches of industry as pharmaceuticals (key players are Lek and Krka) or chemical industry and strong domestic market players running R&D operations within the country is also an interesting place were a skilled R&D specialists might be found. Additionally the country has a well developed educational base as well as a network of state and private research focused institutions.
Energy sector in terms of electricity production in Slovenia consists of three branches being hydropower, thermoelectric power and nuclear power. The total capacity recorded in 2005 reached 2,800 MW of which nuclear power station in Krsko created 670 MW and hydropower was responsible for 886 MW. The thermoelectric stations gave altogether 1,241 MW. This proved to be unable to satisfy the local demand and 12.3% of electricity had to be imported from other countries. What is interesting half of the nuclear power plant output is exported to neighbouring Croatia. Another important fuel is gas which Slovenia imports in majority from Russia and Algeria. Only fossil fuel available in Slovenia is lignite produced in the deepest mine of this mineral in the world in Velenje.
In 2007 it was estimated that 64% of Slovenians use the internet what meant an impressive growth by 31% compared with the previous year. The mobile penetration reached 96.5% in 2008.
Slovenia is also interesting logistics hub as it is located between the Western Europe, Central Europe and the Balkans. The country railway network consisted of 1,230 km of track out of which 41% is electrified. Network of major roads consists of 6,000 km of roads out of which 509 km are motorways.
Political environment
Slovenia is a parliamentary republic and the head of state is directly elected president. The government is elected by the bicameral parliament. The parliament is elected every four years while president every five years. Next elections are to be held in 2012 (both parliamentary and presidential).
As a member of the European Union since May 2004 Slovenia has access to the EU funds and has a legal system harmonized with the one of the EU. In first half of the 2008 Slovenia held the presidency of the Union. Slovenia is a member country of all the major international organisations.
General data
Area: 20,273 sq km
Population: 2.01mn (2008)
Capital city: Ljubljana
Language: Slovenian
Ethnic groups: Slovenians (83.1%), Serbs (2%), Croats (1.8%) and Bosniaks (1.1%)
Land boundaries: Austria 330 km, Hungary 102 km, Croatia 455 km, Italy 199 km
Major economic indicators
| |
2006 |
2007 |
2008 |
2009f |
2010f |
| GDP (EUR bn) |
31.0 |
34.5 |
37.1 |
36.7 |
37.7 |
| Population (mn) |
2.0 |
2.0 |
2.0 |
2.0 |
2.1 |
| GDP per capita (EUR) |
15,487 |
17,169 |
18,366 |
18,010 |
18,395 |
| GDP (constant prices y-o-y %) |
5.9 |
6.8 |
3.5 |
-2.1 |
0.7 |
| Exports, real, y-o-y (%) |
12.5 |
13.8 |
3.3 |
-6.5 |
2.2 |
| Imports, real, y-o-y (%) |
12.2 |
15.7 |
3.5 |
-5.0 |
2.8 |
| CPI (average, y-o-y %) |
2.5 |
3.6 |
5.7 |
1.1 |
1.9 |
| Central bank reference rate |
3.50 |
4.00 |
2.50 |
1.00 |
1.00 |
| Monthly wage, nominal (EUR) |
1,212 |
1,284 |
1,391 |
1,400 |
1,441 |
| Unemployment rate (%) |
6.0 |
4.9 |
4.5 |
5.8 |
6.2 |
| Net FDI (EUR bn) |
-0.2 |
-0.3 |
0.3 |
0.3 |
0.5 |
| FDI % GDP |
-0.6 |
-0.8 |
0.7 |
0.7 |
1.3 |
| Exchange rate to USD AVG |
190.71 |
174.82 |
162.92 |
184.74 |
182.24 |
| Exchange rate to EUR AVG |
239.61 |
239.64 |
239.64 |
239.64 |
239.64 |
Last update: Q2 2009
Useful data
Currency: EUR (since 1.1.2007)
Time zone: GMT +1
Area code: +386
If you would like to find out more on the Slovenian market opportunities please do not hesitate to contact us directly:
phone: (48 12) 618 90 80
faks (48 12) 618 90 08
e-mail:
[email protected]
PMR Business Solutions in Slovenia
Slovenia market reports
To purchase or find detailed information on PMR Publications reports covering the general economy, construction, retail, pharmaceutical, and ICT sectors in Slovenia.
If you are looking for greater detail trust our research and consulting divisions to carry out projects tailored to your business needs.
Slovenia market research
PMR Research offers a full array of qualitative and quantitative research methodologies, providing services such as customer satisfaction studies, brand awareness and brand image research, distribution and competition studies, segmentation and sector analyses.
Slovenia consulting
PMR Consulting offers a wide range of consulting services in Central and Eastern Europe for foreign companies interested in the region. The typical projects include: competitive intelligence, sourcing, strategic advisory, consulting at foreign direct investments and mergers & acquisitions.
