ZAGREB, Nov 14 (Hina) - Croatia's economy next year will grow at a rate of about three percent, somewhat lower than this year but given the causes of the slowing down, next year's rate should be more sustainable than the current one,
according to Bank Austria's CAIB Invest.
ZAGREB, Nov 14 (Hina) - Croatia's economy next year will grow at a
rate of about three percent, somewhat lower than this year but given
the causes of the slowing down, next year's rate should be more
sustainable than the current one, according to Bank Austria's CAIB
Invest. #L#
The forecast is based on the current signs of the slowing down in
Croatia's economy, such as the milder growth rates in industrial
output, retail turnover, loans, and construction, which are the
main generators of this year's economic growth, expected to be 4.3
percent, CAIB Invest analyst Goran Saravanja told reporters in
Zagreb on Friday.
For next year he expects a depreciation of the domestic currency
owing to higher amounts that will be earmarked to service the
external debt and a slightly higher inflation, which he expects
will be 2.9 percent.
Next year is likely to see a considerable drop in imports -- of 0.7
percent in USD -- while the export rate, although significantly
lower than this year, should exceed the import rate, said
Saravanja.
All of the above constitutes a stabilisation of the macroeconomic
situation in the country and a framework for a slightly slower if
more sustainable economic growth at a time when Croatia is
preparing to start negotiating European Union membership, he
said.
According to Bank Austria Creditanstalt analyst Martin Baum, the
start of the negotiations will have a positive effect on Croatia's
credit rating, thus lowering the price of indebtedness of both the
state and companies.
(hina) ha