Despite the upward trend, Slovenia still has a lot of work to do, the report says. The country should aim at attracting more capital investments, as this would help the corporate deleveraging processes.

Slovenia should also improve the protection of competition and corporate governance in state-owned companies, and reduce state ownership in companies.

The OECD also advises Slovenia to overhaul its policy on education, training and innovation. In general, these policies are assessed as relatively good; however, there is still a lot of room for improvement, says the OECD.

"The systems of education and training have to be more effective in reducing the differences among regions, as some parts of the country show a high share of jobs requiring low qualifications."

Moreover, the OECD believes Slovenia needs to undertake a revenue neutral reform of its tax system and stem the rising budget expenditure due to an ageing population.

The government should work toward forming a sustainable pension system by increasing the retirement age.