Building More Competitive Regions in Slovenia

Slovenia’s economy has made impressive progress over the past decade, with real GDP growing, unemployment falling, and a strong ranking of exports as part of national output. However, not all parts of the country have benefited equally. Economic activity, foreign direct investment and employment opportunities are increasingly concentrated in and around Ljubljana, while many of Slovenia’s 12 regions are experiencing lower rates of labour productivity and R&D. In addition, while quality of life in Slovenia is generally high, there are regional variations – particularly in some health, social and life satisfaction indicators – with implications for regional development. This report explores recent economic and social trends in Slovenia and considers what is driving regional inequalities, including competitiveness gaps, differences in regional attractiveness, and the uneven impacts of structural challenges, such as the transition to net zero. The report then considers Slovenia’s multi-level governance system and how it could be strengthened to better support regional development and the implementation of the forthcoming national regional development strategy. The report also offers a set of policy recommendations and a plan for implementing a short set of priority actions to build more competitive regions in Slovenia.