San José State University
Department of Economics

applet-magic.com
Thayer Watkins
Silicon Valley
& Tornado Alley
USA

The Economy and Economic History of Slovenia

Ancient History

Slovenia was populated by Slavs in their general migration into the Balkans during the sixth through the ninth centuries. The Slovenes had settled into their present location by the end of the 500's AD. The language those settlers spoke was not significantly differentiated from Croatian at the time but over the period from 600 AD to 900 AD it became a separate language.

Slovenia was conquered by a Germanic empire about 750 AD and became a property of various Germanic empires. Eventually control of Slovenia resided in Austria. In 1918 Slovenia joined with Serbia and Croatia in the formation of Yugoslavia.

Slovenia is mountainous but with fertile river valleys where grain and potatoes are grown. There and elsewhere there are fruit orchards. Stock raising is also important. The slopes of the mountains are forrested and provide the basis for wood product industries.

In Slovenia as elsewhere in the so-called socialist world the Stalinist model for the economy called for excessive investment in heavy industry. Coal mining to fuel those heavy industries has been important.

(To be continued.)

Recent Economic Performance

The Gross Domestic Product of Slovenia in 2007 was 33.5 billion euros. Prior to 2007 the economic statistics in Slovenia were expressed in the Solvenian currency of tolars. To avoid the problem of converting from tolars to euros the real GDP of Slovenia below is given as an index number with 2000=100.

Gross Domestic Product of Slovenia,
Index at constant prices 2000-2008I
YearGDP IndexGrowth Rate
%/yr
2000100 
2001103.13.1
2002106.93.7
2003109.92.8
2004114.84.5
2005119.54.1
2006124.64.3
2007134.37.8
2008I133.7 
Source: International Monetary Fund Financial Statistics

After a surge in growth in 2007 Solvenia experienced a slight downturn in the first quarter of 2008. The statistics for the second quarter are not yet available.

Slovenia experienced moderate inflation in the early years of this decade but that inflation has fallen to negligible levels in recent years.

The Price Level in Slovenia,
Index 2000-2008I
YearGDP Deflator
Index
Inflation Rate
%/yr
2000100 
2001108.38.3
2002116.57.6
2003123.07.0
2004127.13.3
2005128.81.3
2006136.25.7
2007139.22.2
2008I141.6 
Source: International Monetary Fund Financial Statistics

(To be continued.)


HOME PAGE OF applet-magic
HOME PAGE OF Thayer Watkins