Closed borders strangling Slovenia’s export-driven economy

27 April 2020

Slovenian Economy Minister Zdravko Pocivalsek announced that Slovenia would begin the process of opening borders its border in May, while easing social distancing measures at home. A new set of regulations will also be worked up to be implemented in the country’s tourism sector. Tourism brings about €6bn into the country’s economy, or 13 percent of GDP. Shops of up to 400 sqm will open for business on May 4, except for those located in shopping malls, while restaurants and hotels will be shuttered until the second half of the month. Manufacturers are desperately waiting for borders to reopen, as 80 percent of their production is shipped abroad, but their fate will also depend on the overall health of the EU economies. A recent survey found that half of all small businesses in the country expected at least a 30 percent decline in sales for the year, while on-third thought this figure would be closer to 50 percent.

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