ZAGREB, Jan 8 (Hina) - According to the recent report by the Dun&Bradstreet (DB) credit rating company, Croatia's risk indicator for January is the same, namely DB4d, with a well-balanced trend as in December 2001. A growth of Gross
Domestic Product (GDP) and a decrease of an inflation rate mark Croatia's risk profile in the first month of 2002, officials of Zagreb's company BonLine, a D&B representative, said in statement Tuesday. Croatia's industrial production and retail significantly increased in the past several months, which resulted in a strong growth of GDP. With regard to these data, D$B is considering a possibility to increase a GDP growth assessment for 2001 which currently amounts to four percent. In proportion to a drop of retail prices, an inflation rate dropped from 3.2 percent in October to 2.8 percent in November, and D&B revised its forecast for annual inflation to 2.7 percent, and to 2.5
ZAGREB, Jan 8 (Hina) - According to the recent report by the
Dun&Bradstreet (DB) credit rating company, Croatia's risk
indicator for January is the same, namely DB4d, with a well-
balanced trend as in December 2001.
A growth of Gross Domestic Product (GDP) and a decrease of an
inflation rate mark Croatia's risk profile in the first month of
2002, officials of Zagreb's company BonLine, a D&B representative,
said in statement Tuesday.
Croatia's industrial production and retail significantly
increased in the past several months, which resulted in a strong
growth of GDP. With regard to these data, D$B is considering a
possibility to increase a GDP growth assessment for 2001 which
currently amounts to four percent.
In proportion to a drop of retail prices, an inflation rate dropped
from 3.2 percent in October to 2.8 percent in November, and D&B
revised its forecast for annual inflation to 2.7 percent, and to 2.5
percent in January this year.
In the report, D&B stresses the importance of good cooperation
among Croatia and international institutions, particularly with
the International Monetary Fund (IMF), as it directly points to an
investment risk degree, including decisions by foreign investors
on investing in Croatia. The Croatian government will have to make
efforts to "meet the IMF requests in terms of a further economic
growth (3.5 percent) and a decrease in trade balance (four percent
of GDP)" considering its goal to attract good customers for firms in
security and power sectors.
D&B estimates deficit trend less optimistically, to 4.5 percent of
GDP.
On the credit rating scale of 24 countries of central and eastern
Europe, Croatia is ninth, while Hungary and Slovenia with DB2d risk
indicators (countries of low risk) are leading on the scale.
Yugoslavia is on the last place with a DB6d risk indicator.
(hina) np