This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Once Star Of EU Newcomers, Slovenia Falters

On the outside, Slovenia's economy appeared to be a picture of health. Living standards grew steadily, and most people enjoyed social benefits such as free medical costs, all without having to go through the painful transition to free markets that the rest of the former communist countries underwent.

But the seemingly perfect system showed cracks with the financial global downturn in 2008.

Slovenia, with a gross domestic product of about euro 35 billion, suffered severe recession in 2009 with the economy shrinking by more than 8 percent in one year, and continuing to decline. The result was a sharp drop in exports and living standards, and a surge in unemployment, now at about 12 percent ⿿ almost double the rate in 2008. Bad bank loans surged to some ⿬6 billion ($7.76 billion), or about 17 percent of the country's gross domestic product.

It was a legacy of decades of Slovene success under the state-run model.

In communist times, Slovenia was known as the "Switzerland of the Balkans." The country of 2 million people was the richest of the six republics that made up Yugoslavia, and boasted export brands such as Gorenje home appliances and Elan winter sporting goods.

Slovenia also was liberal communist Yugoslavia's gateway to western Europe. Its leadership was the most progressive and its way of life the closest to that of the wealthy neighbors Austria and Italy, at a time when the rest of Eastern Europe was tightly in the Soviet grip.

Eight years after joining the EU, Slovenia still looks as neat and picturesque as ever. Slovenes love their outdoor life-style, tourists flock to the resorts in the Alps or the coast. In the capital of Ljubljana, open-air cafes are full at the renovated downtown Presern square, surrounded by ornate 17th century churches and curving stone bridges over the Ljubljanica river.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs