Real regional gross domestic product (GDP) contracted by 6 percent in 2009, reflecting a collapse in tourist arrivals and foreign direct investment (FDI)-financed construction activity. The global financial and economic crisis has also exposed areas of significant weaknesses, notwithstanding...

This 2013 Article IV Consultation highlights that Montenegro’s recovery from the collapse of the lending boom in 2008 has been slowed by the debt overhang that remains in the private sector. Output contracted in 2012 because of unusually severe winter weather early in the year, as well as...

This 2013 Article IV Consultation highlights that after a brief stabilization in 2010, the recession in the Slovenia resumed in 2011 and the economy now has contracted for eight consecutive quarters. Although a sharp contraction in investment was the main driver of the downturn in the early...

Slovenia, among other euro area countries, experienced the largest economic contraction since 2008. The performance of Slovenian banks deteriorated markedly in recent years as a result of the unfavorable operating environment and weak governance. Despite some deleveraging, banks continued to...

As undiversified commodity exporters, GCC economies are prone to pro-cyclical systemic risk in the financial system. During periods of high hydrocarbon prices, favorable economic prospects make the financial sector keen to lend, leading to higher domestic credit growth and easier access to...