The indicator shows the Gross Domestic Product (GDP) per capita in terms of purchasing power, as well as a comparison with the ecological footprint and biocapacity in Slovenia and the EU-27 countries.

Gross Domestic Product (GDP) is the sum of the values of all final goods and services produced in a specific economy within one year. GDP per capita in terms of purchasing power is the most common indicator of a country's level of development. It is expressed in calculated values - purchasing power standards (PPS). Purchasing power standard (PPS) is an artificial unit that, at the average level of EU countries, is equal to one euro. PPS or "EU-27 euro" reflects differences in levels of national prices that are not reflected in exchange rate movements, thus enabling comparisons of development between countries.

Gross Domestic Product (GDP) is an economic measure that quantifies the value of all goods and services produced in a country during a specific period. It represents the economic performance of a country. In contrast, the ecological footprint assesses the human impact on the environment. It measures the amount of natural resources and land area that an individual, community, or country requires to meet its needs. Biocapacity refers to the ability of ecosystems to provide natural resources and absorb the waste generated by human activities. It represents the limitations of our planet. If a country's ecological footprint exceeds its biocapacity, it means that the country is exceeding sustainable limits and relying on the import of natural resources and/or the export of waste. To achieve sustainable development, it is important to reduce the ecological footprint, preserve biocapacity, and steer economic activities towards more sustainable practices.

According to the prevailing development model in the world, higher development (measured, for example, by the Human Development Index) is accompanied by a higher ecological footprint. Development is therefore happening without considering the environmental capacity of the planet. Achieving prosperity through excessive use of resources and ecosystem services is also characteristic of Slovenia (ARSO, 2022).

Since monitoring GDP does not fully capture the sustainable aspect of development by considering the environmental dimension of development, an indicator compares GDP with the ecological footprint. The ecological footprint tracks the use of natural resources and biological capacity, which indicates the regenerative capacity of natural resources. This helps us determine whether our environmental interventions are sustainable and whether our actions are within the planet's capacity.

Per capita biocapacity in Slovenia has not significantly changed since 1992. This means that the ability to produce and replenish ecosystems remains relatively unchanged. However, the ecological footprint per capita has increased significantly, primarily due to the rise in GDP per capita, which also determines an unsustainable standard of living for the population. Both the ecological footprint and GDP show growth in the period from 1992 to 2008, but then the global economic crisis occurred, leading to a decrease in both the ecological footprint and GDP. In recent years, an increase in GDP per capita and consequently the ecological footprint per capita can be observed again.

GDP per capita in terms of purchasing power is gradually increasing in Slovenia. Between 2011 and 2016, there was a stagnation caused by the economic recovery after the global economic crisis. After that period, values started to gradually increase. In 2022, GDP per capita in terms of purchasing power reached 92% of the EU average, which is the highest so far. With the help of supportive and expansionary fiscal policies after the epidemic, the Slovenian economy quickly recovered. Measures to support the population during the epidemic and energy price increases greatly mitigated the impact of both crises on the social and material well-being of the population. State and private investments have also had a positive impact on economic growth. In the second half of 2022, economic growth slowed down due to the effects of the energy crisis and increased uncertainty in the international environment. Slovenia's development gap in GDP per capita in terms of purchasing power represents below-average economic productivity. Slow progress in productivity is a result of low levels of investment. For Slovenia, the transition to a smart and green economy is too slow (UMAR, 2023).

In 2022, Luxembourg had the highest GDP per capita in terms of purchasing power among the EU-27 countries (261). It was followed by Ireland with an index value of 234. Slovenia is slightly below the EU-27 average, specifically with a value of 92. The lowest index values were recorded by Bulgaria, Slovakia, and Greece.

Continuing the current GDP growth trajectory and the model of economic development at the expense of further exceeding the planet's carrying capacity could jeopardize the existence of future generations, accelerate climate change, and contribute to the extinction of animal and plant species. Slovenia's strategic development documents stem from the key development assumption that Slovenia's main development gap compared to the EU average still lies in the area of economic development, while environmental deficiencies are smaller and limited to specific segments. Emphasis is placed on socio-economic conditions such as material well-being, increasing GDP, greater economic growth, and increasing added value and employment. In the future, it will be necessary to supplement strategic documents with an environmental component that dictates economic growth adjusted to environmental capacity and sustainable development, placing environmental capital ahead of creative capital (Plut, 2008).