ZAGREB, Dec 26 (Hina) - A stable macroeconomic framework with brisk economic activities, a low inflation rate, reduction in the registered unemployment, the annual rate of five-percent rise in Gross Domestic Product, and an increase
of the country's debt to a level of 74 percent of GDP are some major features of Croatia's economic sector in 2003.
ZAGREB, Dec 26 (Hina) - A stable macroeconomic framework with brisk
economic activities, a low inflation rate, reduction in the registered
unemployment, the annual rate of five-percent rise in Gross Domestic
Product, and an increase of the country's debt to a level of 74
percent of GDP are some major features of Croatia's economic sector in
2003.#L#
According to the latest estimates, Croatia's external debt may reach
22 billion US dollars at the end of 2003. According to figures
released by the Croatian National Bank in late October, the debt came
to 20.8 billion, rising by 35.4%, or 5.4 billion dollars since the
end of 2002. The 30 percent of the entire rise in the external debt,
however, can be ascribed to changes in the exchange rates of the
dollar and other currencies.
The banking sector's share in the increase of the debt was the largest
in the first ten months, with an increase of 1.8 billion. It is
followed by the state which increased the external debt by 1.66
billion. The increase, made by companies was 1.3 billion.
The the state's share in the entire external debt is 38.5 percent and
it fell from 41.3 percent the state had in the debt in late 2002.
Banks' share rose from 26.1 to 28 percent, other sectors accounted
for 25.5 percent and direct investments eight (8) percent of the
country's foreign debt.
Regarding a deficit in in the current account, the improvement is
visible this year in comparison to 2003. The better situation is a
result, first of all, of high revenues from the tourist season,
Therefore, the deficit in the current account is likely to make up 5.6
percent of GDP.
A deficit in foreign trade remains to be one of the most serious
problems. In the first ten months of 2003, it came to USD6.3 billion
and exceeded by USD1.2 billion the amount of the country's exports
which totalled USD5.13 billion. The exports rose by 27.4 percent in
comparison to the first ten months of 2002.
In the January-October period of 2003, imports came to 11.5 billion
(30.9-% rise).
The coverage of the import by the export fell to a low 44.5 percent.
The most important generator of dynamic economic activities were
intensified investments in construction, especially in road
construction and housing construction. The construction works climbed
by 23.8 percent from January to September 2003.
A rise in consumers' consumption is slowing down.
The country's industrial output rose by 4.3 percent from January to
November this year, but this also registered a gradual slow-down.
An inflation rate is lower than projected. Being calculated on the
basis of retail prices, it came to 1.9% on the annual level this
November.
Some positive trends were registered in bids to halt a rise in
unemployment. Thus, there were 317,000 jobless people registered by
the state-run Employment Office in late November, which was by 14.3
percent (52,700 people) down from late November 2002.
The average salary paid to employees in companies for September
amounted to 3,899 kuna. The average salary rose by 6.1 percent in
nominal terms and by 2.9 percent in real terms as against September
2002.
(Hina) ms