This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.The economic situation and policies of Slovenia were reviewed by the Committee on 6 February 2020. The draft report was then revised in the light of the discussions and given final approval as the agreed report of the whole Committee on 13 July 2020.The Secretariat’s draft report was prepared for the Committee by Jens Høj, Priscilla Fialho and Eva Zver, seconded from the Slovenian Institute of Macroeconomic Analysis and Development, under the supervision of Mame Fatou Diagne and Nicola Brandt. Statistical research assistance was provided by Federico Giovannelli and Klaus Pedersen. Publication coordination was provided by Poeli Bojorquez. The Survey also benefitted from contributions from Tim Salecl Zizek.The previous Survey of Slovenia was issued in September 2017.Information about the latest as well as previous Surveys and more information about how Surveys are prepared is available at http://www.oecd.org/eco/surveys.

The coronavirus pandemic hit the economy hard. Containment measures cut many service activities, while manufacturing was hit by failing foreign demand (). The moderate rise in unemployment reflects measures to support jobs and incomes. The downturn comes after a long period of high growth that had supported higher living standards, improved labour market inclusiveness, and fostered faster income convergence.

The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

Population ageing leads to a sharp increase in the old-age dependency ratio, inducing some of the highest ageing-related spending pressures in the OECD. Higher pension spending reflects that low retirement ages allow Slovenian pensioners to spend more time in retirement than almost everywhere else. New spending pressures arise from the recent increase in accruals. Measures are needed to prolong working lives and encourage people to remain active beyond the statutory retirement age. The health and long-care systems will be faced with ageing induced increases and changes in demand. Containing spending pressures in this area require a more efficient and effective delivery of health services, pointing to the need for strengthening the use of price signals and allow greater supply autonomy.

Population ageing will lead to a smaller and older workforce. Looking forward, this means that growth will increasingly depend on ensuring the best use of Slovenian workers. This implies keeping older and experience workers longer in employment and better support difficult-to-employ low-skilled job-seekers. In addition, better labour allocation will enable workers to realise their productivity and wage potential. This requires a greater role for social partners in securing individual wages that better reflect efforts.