Social protection expenditure in Slovenia increased somewhat in real terms in 2007, while it fell again as a share of GDP, mainly as a result of rapid GDP growth. In terms of expenditure on social protection in purchasing power standards per capita, Slovenia retained its level of social protection expenditure compared with the EU-25. In the structure of expenditure on total social protection in Slovenia, the largest shares are allocated for old age and sickness/health care functions, followed by family/children, disability, survivors, social exclusion not elsewhere classified and housing, where Slovenia stands out the most compared with the EU-27. The risk of poverty increased somewhat in Slovenia in 2008, but income inequality is still among the lowest in the EU-27. According to the comparative data by Eurostat (in 2006), which are only available for 2006, Slovenia was ranked in the third of countries with relatively low material deprivation rates, next to Italy, Germany, Belgium and France.
selected topics Slovenian Economic Mirror, december 2009 29 Selected Topics Social protection expenditure lower unemployment and a higher level of wages. In the EU-27, 26.2% of GDP was allocated for social protection Social protection expenditure in Slovenia increased on average in 2007, 4.8 p.p. more than in Slovenia. The somewhat in real terms in 2007, while it fell again as a average share of social protection expenditure in the EU- share of GDP, mainly as a result of rapid GDP growth. 2521 had been increasing from 2000, when it had totalled Slovenia allocated EUR 7.381 m or 21.4% of GDP for 26.5%, until 2003, while in 2004 it also started to decline. social protection in 2007, which is 1.3 p.p. less than the In 2000–2007, Slovenia was increasing its lag behind the year before. Compared with 2006, social protection EU-25 in terms of social protection expenditure as a share expenditure thus increased by slightly more than 1% in of GDP. Being 2.3 p.p. behind the EU-25 in 2000, Slovenia real terms and close to 5% in nominal terms. The share of widened this gap to as much as 5 p.p. by 2007. expenditure on social protection accounted for 24.2% of GDP in 2000 and has been declining steadily since 2001. In terms of expenditure on social protection in purchas- The decline is attributable to a mix of various factors: GDP ing power standards per capita, Slovenia retained its growing faster than social protection receipts, changes level of social protection expenditure compared with in social protection schemes (such as pension reform), the EU-25. Data on social protection expenditure in as well as fast economic growth, which was reflected in Figure 42: Expenditure on social protection in PPS, in Figure 41: Expenditure on social protection as a share of EU-27, 2007 GDP in 2000–2007, Slovenia, EU-25, in % 200 EU–25 Slovenia 28 180 160 Index level, EU–27=100 26 140 120 100 24 % 80 60 22 40 20 20 2000 2001 2002 2003 2004 2005 2006 2007 0 CY BE BG
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