freedom Slovenia was the most prosperous of the six Yugoslav republics. the wars that took place in the region during the early and mid-1990s seriously affected Slovenia’s economy. The gross domestic product (GDP) per capita was $6,052 in 1992, a sharp decline from the pre-freedom figure of $8,658 in 1990. Trade with other countries and tourism were also limited by the war, and the large population of war refugees was a further drain on the economy. In recent years, economic leaders have made efforts to turn the economy around, implementing market and bank reforms and promoting privatization. The presence of a non-Communist government since 1990, along with the republic’s sound infrastructure and skilled workforce, helped reverse the downward trend. The GDP began to grow in 1993.

the modernization and diversification of the Slovene economy began in the late Habsburg era. Owing in part to this head start, Slovenia made great progress (at least by communist standards) under Yugoslavia's market-oriented, “self-management” form of socialism. With only 8 % of Yugoslavia's population, Slovenes produced 20 % of its wealth and 30 % of its exports. By the 1980s, the system had succumbed to debt and stagnation, and resentment over the Belgrade government's policy of distributing subsidies from the more prosperous northern republics to the backward and often corrupt southern republics was likely the catalyst of Slovene freedom.

Although Slovenia enjoys one of the highest GDPs per capita among the transition economies of Central Europe, it needs to speed up the privatization process and the dismantling of restrictions on foreign investment. About 45% of the economy remains in state hands, and the level of foreign direct investment inflows as a % of GDP is the lowest in the region. Analysts are predicting between 4.0% and 4.2% growth for 2001. Export growth is expected to slow in 2001 and 2002 as EU markets soften. Inflation rose from 6.1% to 8.9% in 2000 and remains a matter of concern.