According to a press release issued by the IMF Resident Representative in Croatia, Athanasios Vamvakidis, "despite the ongoing macroeconomic stabilisation and high oil prices, the economy has been growing at a satisfactory pace and inflation remains subdued. Fiscal discipline has put the general government deficit on a downward path, strong export growth has led to a decline in the current account deficit, and fiscal consolidation, combined with the supporting policies of the Croatian National Bank (CNB), has started putting the brakes on external debt."
The press release goes on to say that " a number of recent measures, such as the change of the pension indexation formula and the initiation of the health sector reform, suggest that the foundations of sound economic policies are being strengthened".
Croatia has a demanding policy agenda and the Ivo Sanader cabinet should "build on the progress achieved so far to accelerate the pace of structural reform, advance fiscal consolidation further and tackle the macroeconomic consequences from the resolution of 'pensioners' debt'."
The IMF will continue providing "its expertise and supporting Croatia's efforts to achieve macroeconomic stability and improve growth prospects," the release concludes.