ZAGREB, Feb 26 (Hina) - The most important goals of Croatia's economic policy are employment and export, Croatian President Stjepan Mesic said on Wednesday, opening the Croatian Employers Association's (HUP) Entrepreneurs Day in
Zagreb.
ZAGREB, Feb 26 (Hina) - The most important goals of Croatia's
economic policy are employment and export, Croatian President
Stjepan Mesic said on Wednesday, opening the Croatian Employers
Association's (HUP) Entrepreneurs Day in Zagreb. #L#
Presenting economic indicators, Mesic recalled that last year's
five-percent growth of the country's GDP was based exclusively on
domestic consumption - private consumption and public
investments.
Mesic warned about negative trends in foreign trade, last year's
import increase of 17% and an increase of exports of a mere five
percent, the export-import coverage ratio of only 45% (compared to
51% in 2001) and a record-high trade deficit of 5.9 billion
dollars.
The government and the central bank should together with employers
find a way to turn economic growth based on domestic consumption
into export-based growth. The only solution for setting the
national economy into motion is the change of the economic policy,
the president said.
If the current trends of growing imports and foreign debt should
persist, future problems will have to be solved in unfavourable
conditions. That is why all elements of economic relations between
Croatia and other countries must be analysed, Mesic said,
mentioning the adoption of a strategy aimed at attracting foreign
investments, a well thought-out industrial policy based on
horizontal incentives, the use of free zones, the production of
machinery, the use of industrial clusters and the change of the
tasks of the business diplomacy.
Mesic recalled that the Economy Ministry directed most of this
year's activities to the establishment of the institutional
infrastructure, including the setting up of the Agency for the
Stimulation of Exports and Foreign Investments and plans to
establish an agency for industrial development.
Mesic believes that the only concrete measures of economic policy
are those adopted by the Croatian National Bank, which imposed a
linear limit on banks' credit activities and their seeking loans
abroad. Establishing institutions and limiting imports is
desirable but not sufficient, he said, urging that concrete
measures for accelerating exports be adopted as soon as possible.
The contribution of entrepreneurs to formulating measures for
increasing exports is crucial, Mesic said.
Croatia's export strategy must be directed to target markets, which
are the markets of the EU and CEFTA countries, neighbouring South-
east European countries and the market of the Russian Federation,
which is growing at an increasingly fast rate, he said.
The Croatian economy has great, insufficiently exploited
development potentials, Mesic said, adding that there could be no
export without sustainable development.
Mesic sees Croatia as a small open economy integrated in the global
economy.
The traditional Entrepreneurs Day this year focuses on
possibilities of and obstacles to the development of Croatia's
exports and the effect of export on economic growth.
The event is attended by numerous domestic and foreign experts and
government officials.
Ahead of the working part of the meeting, HUP director Zeljko
Ivancevic presented Istria County prefect Ivan Jakovcic with a
charter declaring Istria County the one with the most successful
economy in 2002.
(hina) rml