Social inclusion of the population remains at a relatively high level and the efficiency of use of resources and energy has improved somewhat, the Institute of Economic Analysis and Development says in its annual development report.

Nevertheless, some trends are not in line with the overarching goal of Slovenia's strategic development until 2030.

According to IMAD, the growth of productivity since the crisis has remained modest and the indices in innovation are in negative territory. Social protection systems are not sufficiently adjusted to demographic change.

Segmentation on the labour market remains high, while the economic and social inclusion of the elderly is still low.

The number of healthy years is rising relatively slowly and cutting hospital waiting times remains a challenge. The lifestyle of the population also needs further improvements.

Slovenia still has a high carbon footprint, and in particular the greenhouse gas emissions from transport are rising. The share of energy coming from renewables has been stagnating for years, IMAD noted.

In the future, measures for improving the long-term sustainability of development and the quality of life will have to be introduced, it added.

Development policies must focus on speeding up productivity growth, which will help raise the standard of living. Investment in R&D, changes to the education system, life-long learning and faster adapting to the needs of the labour market will be required.

In a bid to adjust to demographic change, the system of social protection and sources of financing must be reformed.

According to IMAD, Slovenia must also focus on its transition to a low-carbon circular economy. The role of the state as the driving force of development should increase through better strategic governance of public institutions, legislative improvements, improvements to the business environment and restructuring of the public finance, the think tank said.