CROATIA'S BUSINESS CONFIDENCE INDEX IN JUNE HIGHEST TO DATE

ZAGREB, June 18 (Hina) - Croatia's Business Confidence Index (BCI) this month reached its highest level to date, amounting to 54.6 points as against 49.7 in May, the Croatian Employers Association said on Monday. About 40 companies who took the poll this month named high interest rates, lack of demand, the tax policy, and corruption as the chief business obstacles. Big companies continue to be more optimistic than small and medium- sized ones. Consequently, the June BCI among big companies is 60.3 points as against May's 54.4, whereas with small and medium-sized ones it is 48.9 points, as against 45 in May. In Croatia, the BCI was launched by the Croatian Employers Association and the Tau conference. The BCI is made among businesses on a monthly basis, through polls focusing on various factors pertaining to the current and future economic situation, for instance plans to increase investments or expectations in connection with higher profitability. The BCI ranges from zero to 100 points and should not be interpreted in the absolute amount but viewed in relation to the preceding amount. The BCI is used worldwide as an indicator of the confidence businessmen have in the economy in the coming period, and is quite accurate in estimating macroeconomic trends, for instance the growth of the gross domestic product. (hina) ha