The survey, conducted among German firms doing business in Slovenia, shows Slovenia slipping behind Germany, Estonia, China, Russia, Slovakia, the Czech Republic and Poland, after having been in second place behind Germany in 2012.

The decline is attributed to the unfavourable tax environment, ineffective fight against corruption, and payment delays, the chamber's officials told the press in Ljubljana on Tuesday.

Nevertheless, Slovenia does have some advantages, most notably a developed infrastructure, good local suppliers and an educated workforce, according to the chamber's president Gertrud Rantzen.

"Slovenia still ranks high among the 16 Central and Eastern European countries, as it is among the top five investment destinations in this region," according to her.

In this year's poll, 82% of the companies said Slovenia's economic standing was poor, up from 78% in the year before. However, the share of those who expect a further deterioration dropped to 41% from 56%.

Companies with German capital generate revenue of EUR 7bn per year in Slovenia and employ over 46,000 workers, mostly in manufacturing, according to the chamber's data.