CROATIAN CHAMBER OF COMMERCE COMMENTS ON ECONOMIC SITUATION

ZAGREB, Dec 9 (Hina) - Croatia is facing great historical opportunities and one of this year's most significant events, after the signing of the agreement on admission to the Central European Free Trade Agreement (CEFTA), will be an agreement between the ministers of six countries (Russia, Belorussia, Ukraine, Slovakia, Hungary and Croatia) on the DruzbaAdria oil transport system, Croatian Chamber of Commerce (HGK) president Nadan Vidosevic said on Monday. The agreement, which should be signed in mid-December, will render Croatia an important link in the transport of energy products, Vidosevic said. #L# Addressing an HGK assembly, Vidosevic pointed to the importance of developing the infrastructure, upgrading railways, and entering new markets, as well as to the need for co-operation between the public and private sectors. The assembly was acquainted with data about the current economic situation in the country at the end of the year. As was highlighted, this year has seen the continued growth, that started in 2000, of the Gross Domestic Product. In the first half of this year, the GDP growth rate measured 4.2 percent, which should be its annual level. Industrial production in the first ten months of 2002 grew by 4.6 percent in relation to the same period last year and it is estimated its growth next year will not be below four percent. This year also saw a low inflation rate, measured by the retail prices index. In October, the inter-annual average growth of retail prices was 2.2 percent, which is the lowest rate in the past seven years. It is estimated that the average inter-annual inflation rate in 2002 will be below 2.5 percent. The assembly adopted a plan of the HGK's activities and a financial plan for 2003. The Chamber's budget for 2003 will amount to about 105 million kuna (14.18 million euros). (hina) sp rml sb