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GOVERNMENT: CROATIA IS PULLING OUT OF RECESSION

ZAGREB, May 10 (Hina) - Finance Minister Mato Crkvenac said on Thursday Croatia was pulling out of recession and expected this year's rate of economic growth to be above four percent.
ZAGREB, May 10 (Hina) - Finance Minister Mato Crkvenac said on Thursday Croatia was pulling out of recession and expected this year's rate of economic growth to be above four percent. #L# Croatia is leaving the state of depression, however, the current economic growth is still not high enough to reflect on the quality of citizens' living conditions due to a fall in the past decade, Crkvenac said submitting a report on economic developments and prices at today's government session. Crkvenac supports his estimate with data which say that the industrial production in the first three months of this year has increased by 5.5 percent as against the same period last year. Retail trade has increased 15 percent, tourism is expected to rise by 15 percent, and this year's March salaries were 5.1 percent higher than in March last year, he said. Public Works Minister Radimir Cacic announced a sharp turnaround in construction, with an expected growth rate of 10 percent. Although unemployment continues to be the main problem, Crkvenac believes the unemployment rate has been stagnating for five months and that there are indications that employment has been improving. The minister believes there is no reason for more serious concern about the prices and that their stability will be maintained throughout this year. Deputy Economy Minister Maja Brinar presented data which read that the costs of living in April this year increased 2.3 percent in relation to December last year. Retail prices increased by 2.1 percent, with the prices of liquid fuels and lubricants having risen by 13.7 percent. The prices of basic food products have dropped, she said, citing as an example a 9.9 percent drop in the price of long-life milk and the unchanged price of brown bread. The Economy Ministry has devised its own method for the calculation of minimum living costs of a four-member family. Those costs in April this year amounted to 4,747 kuna and were only 1.5 percent higher than last year, she said. (hina) sb rml

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