BUSINESS OPTIMISM INDEX INCREASES IN FEBRUARY

ZAGREB, Feb 18 (Hina) - The value of the business optimism index (IPO) in Croatia in February amounts to 52.3 points, and its increase in relation to January, when it amounted to 48.2 points is the result of an increase in optimism in small, medium and large companies, the Croatian Association of Employers (HUP) reported. Big entrepreneurs, however, are more optimistic than small and medium. Small and medium companies, in relation to January, increased their assessment of optimism by 3.3 points (from 46 to 49.3), while big entrepreneurs increased their business optimism by 4.9 points (from 50.4 to 55.3). About 40 companies, of which a half were small and medium size, and a half were big, participated in a Croatian survey, aiming at calculating the IPO. According to the survey, major deterrents in the business optimism in November and December 2000 as well as January 2001, are lack of demand, taxation policy and corruption. The continuation of the increase of perception of demand, as a deterrent, is of a major worry, the HUP stressed. Employers who participated in the survey believe that the smallest deterrents are Kuna exchange rate, inflation and strong competition, while an increase in the labour price, and an inability to receive loans are in the middle of the deterrent scale. The IPO demonstrates business people's trust in the economy in the upcoming period and basic macroeconomic variables. It is being calculated on a monthly basis on a scale from 0 to 100. (hina) it