slovenia as a market
Slovenia has strong political stability, reinforced by its accession to the European Union and the adoption of the euro. It has a robust economy characterized by sustained growth and low inflation. The economy is well-diversified and integrated into the European production chain. The country offers a pro-business environment, as evidenced by its 37th place in the 2020 Doing Business ranking. Positioned in the heart of Europe, Slovenia has quality infrastructure that provides companies with easy access to regional markets.
Nevertheless, there is a high government debt of 80.9% of GDP (OECD, 2021) in the country, and the banking sector is still in a recovering state. The domestic market is relatively small, and there are both formal and informal barriers to foreign direct investment (FDI), such as high taxation and social security contributions. The economy is also exposed to global economic fluctuations, with exports heavily dependent on the EU economic climate. Additionally, the country faces a labour force shortage due to an aging population and stagnant population growth.