ZAGREB, July 10 (Hina) - The Croatian National Bank (HNB) Council stated at a session on Wednesday that over the past several months economic activities in the country have increased, while inflation has remained low.
ZAGREB, July 10 (Hina) - The Croatian National Bank (HNB) Council
stated at a session on Wednesday that over the past several months
economic activities in the country have increased, while inflation
has remained low. #L#
In the first quarter of 2002, the Gross Domestic Product (GDP) rose
by 4.6 percent, which was mostly the result of an increase in
investments and personal spending. The highest annual growth rate
was recorded in the construction and trade - 15.2 and 12 percent
respectively, the HNB said in a statement.
Industrial production in the first five months of this year
increased by three percent in comparison to the same period last
year. Given a considerable increase in equipment imports, a lively
economic activity could be expected in the coming period as well,
the HNB Council said.
Inflation is still low - the annual rate of growth of retail prices
in June was 2.2 percent (as against June 2001, when it was 4.9
percent), while the basic inflation rate was one percent (as
against 4.4 percent last June).
Appreciation pressures, caused by an increased influx of foreign
currency, have continued in June as well. In the past three months,
the HNB managed to alleviate those pressures by intervening in the
foreign currency market and buying 342.2 million euros (173.1
million euros in June). Over the past several years, this is the
strongest intervention of the central bank in the foreign currency
market in a year's second quarter.
Contrary to indicators for June, the first days of July saw a slight
drop in the value of the kuna in relation to the euro. The HNB will
continue preventing major oscillations in the exchange rate in
order to maintain the stability of the kuna, the Council said.
High liquidity has remained an important trait of the banking
system, the HNB said.
The HNB Council agreed with proposals by the supervisory boards of
several banks on the appointment of their management boards'
presidents and members.
Cassa di Risparmio di Trieste - Banca S.p.A. Trieste was given the
permission to acquire 8.144 percent of voting shares in Cassa di
Risparmio di Trieste - Banca d.d. Zagreb, which will rise the bank's
share in its daughter-bank to 80.201 percent, the Council said.
(hina) rml