International trade in goods and services was also in 2016 the most important Slovenia's cross border economic activity. Inward and outward foreign direct investment increased. Compared to 2015 and to domestic enterprises, foreign affiliates in Slovenia again gained on importance.
High degree of Slovenia’s integration in international trade maintained also in 2016
In 2016, compared to 2015, Slovenia again increased the value of exports and imports of goods and services (exports by 5.0% and imports by 4.2%). In terms of the relative size of exports and imports of goods and services in the GDP (exports 77.7%, imports 68.5%) Slovenia was among EU-28 Member States 10th and 11th, respectively. The countries with higher shares of exports of goods and services were Luxembourg, Malta, Ireland, Slovakia, Hungary, the Czech Republic, Belgium, the Netherlands and Estonia.
Slovenia's integration in international trade, measured by the indicator of trade integration of goods, was among the highest among EU-28 Member States. Slovenia was 4th. As regards the indicator of trade integration of services, Slovenia was 15th.
The foreign affiliates in Slovenia are importantly integrated in international trade of goods
Of all active market enterprises in non-financial activities (sections B to J, L to N and S95 according to the Standard Classification of Activities, 2008) in Slovenia in 2016 5.9% were foreign affiliates (inward foreign affiliates, enterprises under foreign control/majority ownership). The share of foreign affiliates in total employment of all persons employed was 22.0%, in turnover 31.8% and in total value added 27.4%.
Foreign affiliates are especially important in international trade of goods. In 2016, foreign affiliates generated 41.6% of exports of goods and 46.4% of imports of goods of all covered enterprises on the domestic territory. By evaluating the significance of the foreign affiliates as exporters and importers, it should be taken into account that exports and imports are additionally carried out by foreign non-residential enterprises. Taking into account the exports and imports of these enterprises, the exports and imports of goods of all foreign enterprises would exceed half of total Slovenia's exports and imports.
The highest share of exports, 24.3%, to other continents was generated by foreign affiliates controlled by the European countries outside the EU
In 2016, all enterprises (Slovenian and foreign) operating in above mentioned activities exported to EU countries 77.1% of the total exports of goods.
The data show that exports and imports of goods of all types of enterprises are, irrespective of the country of control, prevailingly oriented to and from the EU market. The data also show a positive relationship between regional orientation of exports and imports of goods and regional origin of the foreign affiliates. The enterprises in majority control of the EU Member States export to EU markets relatively much more than the enterprises controlled by other countries, either European or Non-European.
The enterprises controlled by EU countries also exported the highest share of goods on the EU market; foreign affiliates of EU countries 80.9% and Slovenia's enterprises 79.0%. In the structure of exports by the continents or regions there are no significant differences between the exports of Slovenia's enterprises and foreign affiliates of EU countries.
All foreign affiliates controlled by countries outside the EU exported to EU countries 58.5%, to other European countries 22.0% and to countries of Asia, America, Africa and Oceania 19.5%. Among these exporters Swiss exporters prevail, followed by Russian and US exporters.
In 2016, the stock of inward foreign direct investment in Slovenia and the stock of Slovenia's outward foreign investment again increased
Foreign direct investment in Slovenia at the end of 2016 amounted to EUR 12.9 billion and compared to the end of 2015 increased by 11.5%. In 2016 foreign direct investment in Slovenia amounted to 32.0% of GDP, which is 2.1 percentage points more than in 2015.
Slovenia’s direct investment abroad at the end of 2016 amounted to EUR 5.7 billion and compared to the end of 2015 increased by 3.7%. In 2016, Slovenia’s direct investment thus amounted to 14.1% of GDP, which is approximately on the level of the 2015 share (14.2% of GDP).
The Competitiveness Index indicates positive changes in Slovenia's position
Two of more complex and composite indicators of globalisation, which do not measure only the flows of goods, services and capital but also other factors and aspects of globalisation, are the Global Competitiveness Index and the KOF index of globalisation.
By the Global Competitiveness Index (source: World Economic Forum; Global Competitiveness Report 2017-2018; http://reports.weforum.org/global-competitiveness-index) Slovenia was ranked in 2016 48th among the 137 observed countries (in 2015 56th among 138 countries) or 20th among the EU-28 Member States (in 2015 22nd). The countries with the highest global competitiveness index were Switzerland, the United States, Singapore, the Netherlands and Germany.
By the KOF index of globalisation 2017 (source: ETH, KOF Swiss Economic Institute; http://globalization.kof.ethz.ch) Slovenia positioned itself by globalisation degree in 2014 among 207 countries on the 33rd place (in 2013 on the 32nd place) and among EU Member States on the 24th place, the same as for 2013. By the KOF index the most globalised countries are the Netherlands, Ireland, Belgium, Austria and Switzerland.
Selected structural business indicators of foreign inward affiliates1) , Slovenia, 2016
1) Covered are active market non-financial enterprises (NACE sections B to J, L to N and S95 according to the Standard Classification of Activities, 2008). Data are provisional.