The Chamber of Commerce and Industry of Slovenia (GZS) analysis for 2025 shows that the growth in net profit does not reflect the actual situation in the Slovenian economy. The highest profit growth was recorded in sectors where financial holdings operate — professional, scientific and technical activities — and in the energy sector. Revenue, exports and added value remain under pressure, while labour costs are rising faster than productivity. The consequences are already visible: declining competitiveness, fewer resources for investment and development, and increasing pressure on business operations, as also confirmed by a survey conducted among 460 companies. We therefore support tax relief for labour and businesses, as proposed in the 2026–2030 coalition agreement, since a more comprehensive approach through various measures follows the objective of Slovenia’s development.
The highest profit growth was recorded in the sector where financial holdings operate and in the energy sector
Director General of the Chamber of Commerce and Industry of Slovenia (GZS), Vesna Nahtigal:
“Casual statements about the economy’s record profits do not reflect the full picture of the actual situation in companies. The state of the economy cannot be assessed based on one or two indicators alone – we need a comprehensive view of added value, investments, exports, and labour costs. GZS did not predict catastrophic conditions. However, we did warn that economic growth had been slowing in recent years, particularly due to weak exports, which is still confirmed by the latest available data.”
A detailed analysis of corporate performance in 2025, prepared by the Analytical Department of the Chamber of Commerce and Industry of Slovenia (GZS) based on AJPES data and additional in-depth reviews, shows that profit growth was concentrated in a narrow segment of the economy and did not stem from regular business operations, as EBITDA actually contracted in real terms. The largest contributions to the growth in net profits came from professional, scientific and technical activities — which also include financial holding companies due to the revaluation of equity stakes — and from the energy sector. Manufacturing and trade together accounted for only 28 per cent of the total increase in Slovenia’s net profits.
Last year’s profit growth was mainly the result of reduced losses and financial effects in affiliated companies. The key challenge for the Slovenian economy remains the gap between productivity and labour costs. Productivity did increase, but at a significantly slower pace than labour costs, causing the ratio between labour costs and added value to reach its highest level since 2020. Over the past five years, labour costs per hour worked in the private sector have risen approximately twice as fast as the EU-27 average.
In the first quarter of this year, the Slovenian economy recorded strong year-on-year growth (+3%), although this was also partly because Slovenia’s GDP in the comparable first quarter of last year was negative. However, when comparing the first quarter of this year with the final quarter of last year, growth stood at 0.7 per cent — lower than in the second or third quarter of last year. It is encouraging that, since the last quarter of 2025, investment has been strengthening not only in buildings and infrastructure, but also in machinery and equipment. Nevertheless, these positive trends have not yet translated into stronger growth in exports of goods and services.
Survey on the impact of labour costs among 460 companies
In May, a survey was conducted among 460 companies regarding the impact of high labour costs on business operations. More than half of the companies recorded double-digit growth in labour costs per employee over the past year, while one-fifth reported increases between 8 and 10 per cent. More than one third of the companies stated that this was the highest rise in labour costs in the past ten years, while nearly one third considered it the highest increase in the last three years. Two-thirds of companies reported a significant impact on profitability, liquidity, orders and jobs. If conditions do not improve, half of the companies will continue raising prices, 38 per cent will halt investments, 31 per cent will freeze hiring, and one-fifth will introduce artificial intelligence solutions. Nearly one-sixth of companies also anticipate layoffs.
Chief Economist and Head of the Analytical Department at the Chamber of Commerce and Industry of Slovenia (GZS), Bojan Ivanc:
“The current cost shock is unparalleled in scope and intensity over the past decade and is already triggering structural responses from companies. Businesses can no longer fully pass labour costs on to prices. This means declining profitability, lower investment and increasing pressure on employment. Unless conditions change, workforce reductions will become even more pronounced next year, and the consequences will also be felt in the private sector labour market.”
Coalition Agreement: Tax Relief as an Incentive for Investment, Development and New Jobs
The Chamber of Commerce and Industry of Slovenia (GZS) therefore, welcomes the proposals set out in the 2026–2030 coalition agreement regarding tax relief for labour and businesses.
Vesna Nahtigal:
“We welcome the measures aimed at easing the tax burden on employees’ salaries, as well as tax incentives for investment, innovation, digitalisation, research and development, and the attraction of top talent. These are measures that can strengthen productivity, investment and long-term growth.”
In our assessment, the proposed solutions would provide relief not only for senior management, but also for development-oriented professionals such as engineers, developers and other highly skilled experts with high added value. At the same time, they would encourage domestic investment, attract foreign investment, support the development of young and start-up companies, and create a more attractive business environment for young people. A lower tax burden for individuals and companies means more room for economic activity, more jobs, higher wages and greater investment. This is the right direction for a stronger and more competitive economy.
At the same time, however, the Chamber of Commerce and Industry of Slovenia (GZS) notes that the coalition agreement lacks certain measures, such as the reintroduction of the unlimited possibility to carry forward tax losses for 100 per cent of the tax base, or at least extending the carry-forward period from five to a minimum of ten years; expanding investment allowances to cover fixed assets in predominantly service-based activities; introducing accelerated depreciation for investments in renewable energy sources and local raw material resources; a gradual introduction of the long-term care contribution; and more favourable income tax treatment for posted workers.
