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FINANCE MINISTRY SAYS MACRO-ECONOMIC SITUATION IN CROATIA STABLE

ZAGREB, May 14 (Hina) - Despite the pessimistic forecasts some years ago that Croatia would be faced with collapse and illiquidity, this did not occur. The country has seen very stable and favourable macro-economic indicators, and at a time of world recession too, Assistant Finance Minister Velimir Rajkovic said on Tuesday at a seminar on import financing, organised by HVB Bank Croatia.
ZAGREB, May 14 (Hina) - Despite the pessimistic forecasts some years ago that Croatia would be faced with collapse and illiquidity, this did not occur. The country has seen very stable and favourable macro-economic indicators, and at a time of world recession too, Assistant Finance Minister Velimir Rajkovic said on Tuesday at a seminar on import financing, organised by HVB Bank Croatia. #L# Positive indicators include a low inflation rate, a decrease in the budget deficit and public debt and large foreign currency reserves, along with an expected good tourist season and an increase in building activities and retail trade, Rajkovic said. This should contribute to the government's objective of a 3.5 percent economic growth for this year. Emphasising the significance of the tourist sector for Croatia's economy, Rajkovic presented data indicating a 25 percent increase in overnight stays in the first several months of this year. The number of foreign arrivals in the first three months increased by 44 percent, which indicates that this year's tourist season could be a record one, he said. According to the latest information from the Customs Service, the first four months of this year recorded a significant nominal increase in exports - of approximately 11 percent, Rajkovic said, adding that the governments' priority was to attract direct foreign investments. (hina) sp

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