ZAGREB, June 12 (Hina) - Even though complete data for the first quarter of 2001 are not yet available, it seems that the economic growth remained at a satisfactory level, but it is still not strong enough to reduce the unemployment
rate, the Croatian National Bank said in the latest issue of its "Quarter Bulletin". The HNB stressed that despite the fact that the economic growth in the last quarter of 2000 was moderately slow, the annual growth of the real Gross Domestic Product (GDP), which amounted to 3.7 percent, clearly marked the end of recession, which started in late 1998. The industrial production index increased by 5.5 percent in relation to the same quarter in 2000, while the processing industry index increased by 7.8 percent. In relation to the first quarter of the last year, trade increased by about 9.8 percent, while retail trade increased by 16.5 percent. A high level of consumptio
ZAGREB, June 12 (Hina) - Even though complete data for the first
quarter of 2001 are not yet available, it seems that the economic
growth remained at a satisfactory level, but it is still not strong
enough to reduce the unemployment rate, the Croatian National Bank
said in the latest issue of its "Quarter Bulletin".
The HNB stressed that despite the fact that the economic growth in
the last quarter of 2000 was moderately slow, the annual growth of
the real Gross Domestic Product (GDP), which amounted to 3.7
percent, clearly marked the end of recession, which started in late
1998.
The industrial production index increased by 5.5 percent in
relation to the same quarter in 2000, while the processing industry
index increased by 7.8 percent. In relation to the first quarter of
the last year, trade increased by about 9.8 percent, while retail
trade increased by 16.5 percent.
A high level of consumption was also marked in the first quarter, as
well as a sudden increase in import.
Despite the increase in import, latest balance-of-payments data
for the final quarter of 2000 are encouraging, the HNB claims. The
total current account deficit amounts to 2.8 percent of he GDP,
namely it is at the lowest level since 1995.
The economic growth is still not strong enough to reduce the
unemployment rate, the HNB says. The intensive reconstruction of
economy cancelled many job but also created new ones. In the first
quarter , 69,000 persons registered in the Croatian Employment
Bureau, 31,000 got employed, while labour force reduced by 27,000.
The unemployment rate increased in the first quarter (seasonal
labour).
Inflation in the first quarter was moderate, with a 0.7 percent
increase of retail prices. The inter-annual inflation rate dropped
from 7.4 percent to 6 percent in March.
Wages moderately increased. The government plans to decrease wages
in the public sector, and will implement this decision by the end of
the second quarter.
The currency exchange developments show that the value of Croatia's
kuna moderately decreased in January and February, and
significantly increased in March. By mid May, the value of kuna
increased by 3.26 percent in relation to EURO.
The appreciation of kuna can help inflation to drop. The HNB,
however, is trying to prevent strong currency fluctuations by
taking measures for the prevention of the appreciation trend.
Monetary movements point to the continuation of a high increase of
monetary aggregates. Foreign currency deposits are still rapidly
increasing, namely 1.5 percent each month.
(hina) it sb