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GOVT. ADOPTS BASIC ELEMENTS OF ECONOMIC, FINANCIAL POLICY

ZAGREB, May 9 (Hina) - The Croatian government estimates economic growth will reach 3.5 percent this and four percent next year, according to a document adopted on Thursday, while the key elements of its economic and financial policy are stepping up employment and increasing the standard of living.
ZAGREB, May 9 (Hina) - The Croatian government estimates economic growth will reach 3.5 percent this and four percent next year, according to a document adopted on Thursday, while the key elements of its economic and financial policy are stepping up employment and increasing the standard of living. #L# Next year special attention will be paid to increasing support to entrepreneurs, the infrastructure, faster investments, which envisages reducing the budgetary deficit, increasing savings, privatisation revenue and export competitiveness, stepping up the reform of the judiciary, and improving the education system, said Finance Minister Mato Crkvenac. These objectives, stated in the document on the basic elements of the government's economic and financial policy in 2002-3, resulted in estimates of 3.5 and four percent economic growth rates and 4.3 and 3.5 percent inflation rates. The budgetary deficit is expected to decrease, to 4.2 percent of Gross Domestic Product this and 2.5 percent next year. Crkvenac said this meant the 2003 budget would have to rely on saving and be restrictive as regarded state expenditure. Success, he added, depends on agreement as to the implementation of reforms, and support from employers and unions to the project he called "Croatia on the Path of Ascendancy in the Next Period." The participants in today's debate suggested a series of amendments to the document. The debate focused on how to increase the growth rate, with the consensus that it alone can resolve the unemployment issue. (hina) ha sb

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