CENTRAL BANK COUNCIL DEBATES ECONOMIC, MONETARY TRENDS

ZAGREB, July 4 (Hina) - Debating the latest economic and monetary movements on Wednesday, the Croatian National Bank (HNB) Council assessed economic growth was dynamic. The session was chaired by governor Zeljko Rohatinski. Gross domestic product marked a 4.2 percent increase in this year's first trimester, which was the sixth consecutive quarter growth. In May industrial production rose by 8.2 percent, and by 7.2 percent in the first five months as against the same period of time last year. Retail trade was 13.3 percent higher in April and 11.5 percent higher in the first four months of the year as against 1999. Overnights in the first five months increased by 24 percent. Balance-of-payments data indicate export rises considerably slower than import. The balance-of-payments current account deficit is higher than last year. The HNB Council says such movements are in part a reflection of expedited economic activity. The 11 percent export rate in the first five months of the year is satisfactory. Data on price movements in June are unavailable. On the exchange rate, the fast appreciation of the domestic currency in relation to the euro was put on hold in late May. In April and May, the central bank intervened on the foreign currency market by purchasing EUR206 million. The exchange rate remained stable in June, even without any intervention from the HNB on the foreign currency market. (hina) ha sb