Slovenia is a small open economy that enjoys prosperity and stability. It can be fairly characterized as a developed country something that is highlighted by the fact that became the first 2004 European Union entrant to adopt the euro. Slovenia is beneficiated by a developed infrastructure, a well-educated work force, and a strategic location between the Balkans and Western Europe. Nevertheless, the abovementioned economic prosperity was seriously averted during 2009 due to the global financial crisis. Gross domestic Product (GDP) declined by 7.3% mainly due to the significant drop in exports and gross fixed capital formation.

Historically the economic status quo of the country was developed. It is indicative that although it comprised only about 1/13 of Yugoslavia's total population, it was the most productive of the Yugoslav republics, accounting for 1/5 of its GDP and 1/3 of its exports. Therefore, when it gained independence in 1991 already had a relatively prosperous economy and strong market ties to the West. Since then significant steps have been made towards the further integration of the country into the socio-economical institutions of the West. Slovenia is nowadays a member of the World Trade Organization, joined European Union on May 1st, 2004 and introduced to the Euro at the beginning of 2007. Additionally, Slovenia participates in SECI (Southeast European Cooperation Initiative), and in the Central European Initiative.

Since 1997, Slovenia has been a model of economic success and stability for the region. Has enjoyed dynamic growth and is steadily moving towards the most advanced states of Europe. The aforementioned economic situation created a favorable business environment. This environment was further reinforced by the structural reforms that paved the way to European Union (EU) accession in 2004. Additionally, practical and meticulously implemented macroeconomic policies helped to maintain growth without creating any major imbalances.

This abovementioned economical situation was dramatically altered during 2008 when the Slovenian economy was hit hard by the international financial crisis and the collapse of external demand. The situation was further deteriorated during 2009 when the economy was shrunk by 7.3%. The severity of the impact is explained by the degree of external openness of the economy, the structure of exports and the transmission of the collapse of external demand on domestic production, investment and private consumption. The sectors that were worst-affected have been those producing cyclically-sensitive goods, such as the automobile sector (1.1% of Slovenian value-added). In the end of 2009 and through 2010 a small recovery began underpinned by a rebound in exports. The pace of growth should pick up gradually through 2010 and 2011 as the forces constraining domestic demand recede.

Slovenia is a developed country which showcased a tremendous progress throughout last years. Though, the economic crisis of 2008 created a negative economic environment in the country, which highlighted that there are still a lot of changes the country should do in order to have a perpetual expansion of its economy.