ment of State,
Washington, DC 20521-7140
telephone: [386] (61) 301-427, 472, 485
FAX: [386] (61) 301-401

Flag: three equal horizontal bands of white (top), blue, and red with
the Slovenian seal (a shield with the image of Triglav in white
against a blue background at the center, beneath it are two wavy blue
lines depicting seas and rivers, and around it, there are three
six-sided stars arranged in an inverted triangle); the seal is located
in the upper hoist side of the flag centered in the white and blue
bands

@Slovenia:Economy

Overview: Slovenia appears to be making a solid economic recovery,
fulfilling the promise it showed at the time of Yugoslavia's breakup.
It was by far the most prosperous of the former Yugoslav republics,
with a per capita income more than twice the national average. It also
benefited from strong ties to Western Europe and suffered
comparatively small physical damage in the dismemberment process. The
beginning was difficult, however. Real GDP fell 15% during 1991-92,
while inflation jumped to 247% in 1991 and unemployment topped 8% -
nearly three times the 1989 level. The turning point came in 1993 when
real GDP grew 1%, unemployment leveled off at about 9%, and inflation
slowed dramatically to 23%. In 1994, the rate of growth of GDP rose to
4%, unemployment remained stable, and inflation dropped to 20%. This
was accomplished, moreover, without balance-of-payments problems. The
government gets generally good economic marks from foreign observers,
particularly with regard to fiscal policy - the budget deficit in 1994
was only about 1% of GDP, following several years of small surpluses.
Prospects for 1995 appear good, with economic growth expected to
remain strong while unemployment and inflation may decline slightly.
Privatization, sluggish to date, is expected to pick up in 1995.

National product: GDP - purchasing power parity - $16 billion (1994
est.)

National product real growth rate: 4% (1994 est.)

National product per capita: $8,110 (1994 est.)

Inflation rate (consumer prices): 20% (1994)

Unemployment rate: 9% (1994 est.)

Budget:
revenues: $9.9 billion
expenditures: $9.8 billion, including capital expenditures of $NA
(1993)

Exports: $6.5 billion (f.o.b., 1994 est.)
commodities: machinery and transport equipment 27%, intermediate
manufactured goods 26%, chemicals 9%, food 4.8%, raw materials 3%,
consumer goods 26% (1993)