ZAGREB, May 8 (Hina) - The Gross Domestic Product in 2002 is expected to increase by 2.8 percent; state spending will be decreasing at a slower pace, and investments, primarily in the construction industry, will increase, the Croatian
Employers Association's (HUP) Economy Council said.
ZAGREB, May 8 (Hina) - The Gross Domestic Product in 2002 is
expected to increase by 2.8 percent; state spending will be
decreasing at a slower pace, and investments, primarily in the
construction industry, will increase, the Croatian Employers
Association's (HUP) Economy Council said. #L#
This estimate was published in the latest issue of "The Economic
Monitor", a quarterly publication which is issued by the HUP
Economy Council.
Last year's GDP saw an increase of 4.1 percent. Analysts foresee a
lower growth rate than the authorities and the central bank. The
Croatian National Bank (HNB) has estimated this year's growth rate
at 3.5 percent.
Members of the HUP Economy Council also convey a consensus by
domestic analysts about a 2.4 percent increase of the balance of
current accounts deficit and an inflation rate of below four
percent, with an average inflation rate of three percent.
According to "The Economic Monitor", the beginning of this year has
seen the slowing down of industrial production, and the
continuation of the recovery of the construction industry, which is
believed to be the sector with the potentially highest growth rate
and, along with tourism, one of the main growth generators this
year.
The analysts believe that negative trends on the labour market have
been decreasing and that employment possibilities have been
improving, as well as that the demand for jobs has been on the
increase. "We expect that employment demand will increase this
year," the economists say. They also estimate that employment in
the economic sector could increase, as well as that the public
sector could see a drop in employment, particularly with the start
of announced reforms in the armed forces.
(hina) rml sb