OECD Economic Survey of Slovenia - transcript
Slovenia’s economy has been strong and resilient, despite multiple external shocks and rising global uncertainty.
Growth slowed in 2025 due to weaker trade but is expected to pick up thanks to public spending and rising real incomes.
GDP growth is projected to rise to 1.9% in 2026 and 2.2% in 2027.
The job market remains tight, with labour shortages fuelling wage growth.
Inflation is projected to rise to 3.3% in 2026 before declining to 2.6% in 2027.
The budget deficit widened in 2025. A tighter fiscal stance would allow rebuilding buffers and create space for ageing costs, defence requirements and other priority spending.
To reduce the budget deficit:
- Index pensions fully to inflation
- Link the minimum retirement age to life expectancy
- Shift taxation from labour to more growth-friendly taxes
Slovenia’s open economy remains vulnerable to trade disruptions. Deeper trade integration would help reduce costs and create a more diversified economy.
To deepen trade integration:
- Increase the private sector’s involvement in the planning and management of strategic reserves
- Reduce the costs of cross-border shipping through automation and improved co-operation between agencies
- Streamline regulations and lower unnecessary barriers to services trade
AI adoption is relatively high overall but limited among small and medium-sized enterprises.
To fully seize AI’s economic opportunities:
- Systematically integrate AI skills in education and training
- Expand workforce upskilling and reskilling programmes, prioritising AI skills
- Address labour shortages by easing requirements for highly skilled, non-EU citizens to obtain work permits
Business investment is low, held back by shallow capital markets.
To boost business investment:
- Encourage greater competition in financial markets
- Reduce tax bias towards property investment
- Reduce state ownership
- Align supervision of cross-border capital flows with that of other European countries
- Broaden private-funded pensions
To learn more, read the 2026 Economic Survey of Slovenia. https://oe.cd/slovenia