The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper discusses several features of the Slovene economy that may explain the weak relationship between credit and domestic demand growth. It reviews credit growth developments in Slovenia and in selected European Union new member states, and compares their experiences with that of noncore euro area countries, including Ireland, Greece, Portugal, and Spain, before their adoption of the euro. Findings on the relationships between credit and domestic demand based on simple correlation and regression analyses are also presented.