BMI's Executive Summary

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Sound macroeconomic policies have allowed Slovenia to sustain robust growth with small external imbalances and public debt while gradually lowering inflation and interest rates to eurozone levels. BMI estimates the construction industry's contribution to GDP was approximately 5.71% in 2007. BMI estimates the average growth rate of the construction sector to be 4.02% over the 2008-12 period.

Entry into the European Union (EU) has fostered deeper trade integration and has also intensified growth spill over from the region. The construction sector has benefited immensely, as funds are now available for crucial infrastructure projects and for upgrading existing infrastructure. The Slovenian government has earmarked EUR23.92bn (US$29.9bn) for national development projects for 2007-23, a large share of which would be invested in construction projects. Major infrastructure projects currently under way or on the anvil include the US$517.24mn Port of Koper expansion project, construction of the Slivnica- Drazenci motorway, a US$196.75mn new cross-border rail link between the Italian port of Trieste and the Slovenian city of Divacam. Major investments have also been planned for boosting the tourism sector by establishing leading hotel brands and casinos across the country.

However, a balanced expansion will require strict fiscal and prudent wage policies and sustained financial stability. Deeper structural reforms are needed to tackle Slovenia's many rigidities in public spending, the financial sector and labour markets. A rapidly ageing population also puts a premium on productivity and labour participation to boost potential growth. Continued strong credit growth and rising asset prices add to these risks. Failure to contain fiscal balances and wage growth and inability to boost structural reforms can lead to low growth and a loss of competitiveness if the economy were to slow down.

Despite these risks, the nation has a positive outlook in terms of construction growth. Given the fact that macroeconomic fundamentals are strong and electoral pressures could gain momentum this year, the present period presents the best opportunity to implement reforms. Credit growth is robust and tax policies support a broad recovery in investment. The strong economy has boosted job creation, mainly in services, and unemployment has declined. Domestic demand is likely to remain the primary driver for growth, as private consumption rises in line with disposable incomes. The implementation of the government's privatisation plans would also help attract foreign direct investment and enhance efficiency.

Chapter 1 - Executive Summary

Chapter 2 - Industry Trends And Development

Market Overview

Slovenia’s Economy In 2006

Slovenia’s Construction Industry In 2006

Major Companies

Recent Investment Incentives

Chapter 3 - Key Projects

Transport

Utilities

Residential And Commercial Construction

Table: Slovenia Major Infrastructure Projects

Chapter 4 - Business Environment

Introduction

Table: Emerging Europe Business Ranking

Business Attractiveness Rankings – Methodology

Regional Overview

Slovenia: Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 5 - SWOT Analysis

Slovenia Infrastructure SWOT

Slovenia Political SWOT

Slovenia Economic SWOT

Slovenia Business Environment SWOT

Chapter 6 - Industry Forecast Scenario

Slovenia Infra/Print Table

Risks

Chapter 7 - Macroeconomic Outlook

Table: GDP, Population And Output

Chapter 8 - Country Snapshot: Slovenia Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education And Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages Per Annum

Table: Key Players

Chapter 9 - Company Monitor

Primorje

SCT

Trimo

Chapter 10 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Chapter 11 - Appendix: Regional Demographic Data

Wages (ave labour force per annum), US$ PPP

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Competitive Landscape for Europe Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of European Infrastructure Sources

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BMI's European Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, infrastructure industry associations, chambers of commerce and company reports. Information sources include: