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ECONOMIC GROWTH RATE HAS TO BE A MINIMUM FIVE PCT ANNUALLY - PM

OPATIJA, Nov 12 (Hina) - Prime Minister Ivica Racan said on Wednesday his cabinet's principal achievement was a stable, open, and a more competitive Croatia.
OPATIJA, Nov 12 (Hina) - Prime Minister Ivica Racan said on Wednesday his cabinet's principal achievement was a stable, open, and a more competitive Croatia. #L# This government has adopted a long-term economic development strategy under which GDP per capita in the next dozen years should be twice that in 2001, unemployment has been halved while macroeconomic stability has been preserved, Racan said at the 11th conference of the Croatian Economists Society. The three-day event, which began in the northern Adriatic resort of Opatija today, has pooled hundreds of officials, economy experts, and businessmen due to address Croatia's economic policy in 2004. In line with the strategy, the government's tasks include a minimum five percent annual GDP growth rate, a 2.3 percent annual inflation rate, and reducing the number of the jobless to about 200,000 with a maximum unemployment rate of 10 percent, said Racan. He added that the growth of pensions should be adjusted to that of salaries, and that projects initiated in road construction, the modernisation of railways and supplying the entire country with gas needed to be completed. The export of finished goods has to be encouraged, privatisation continued, and the destruction of the environment stopped, the PM said. He announced plans to further relieve taxpayers by introducing a 12 percent VAT rate for the agriculture, food, and tourism. "We have improved the situation in the economy, social rights, the rule of law, civil rights and freedoms, Croatia's relations with the international community," Racan said speaking of his cabinet's four-year term. He added, however, that more ought to have been done, among other things, in preventing and punishing white-collar crime and corruption, making the rule of law more efficient, and stimulating exports. (hina) ha sb

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