ZAGREB, July 10 (Hina) - Although Croatia's economy in the last quarter of 2000 increased at a somewhat slower rate, economic indicators for the first several months of 2001 show that the country's economy has started growing at a
speedier rate again, with the Gross Domestic Product in the first quarter being 4.2 percent higher in real terms as against the same period last year. This was stated by Jasna Belosevic Matic of the Croatian Chamber of Commerce's (HGK) sector for macroeconomic analyses at HGK's assembly on Tuesday. In her speech on the situation and trends in economy this year, she said the trends of economic growth were visible from positive results both in the real and financial sectors. This means that this year's first five months have seen a more significant rise in industrial production (seven percent more than in the same period last year), retail sales (a nominal in
ZAGREB, July 10 (Hina) - Although Croatia's economy in the last
quarter of 2000 increased at a somewhat slower rate, economic
indicators for the first several months of 2001 show that the
country's economy has started growing at a speedier rate again,
with the Gross Domestic Product in the first quarter being 4.2
percent higher in real terms as against the same period last year.
This was stated by Jasna Belosevic Matic of the Croatian Chamber of
Commerce's (HGK) sector for macroeconomic analyses at HGK's
assembly on Tuesday. In her speech on the situation and trends in
economy this year, she said the trends of economic growth were
visible from positive results both in the real and financial
sectors.
This means that this year's first five months have seen a more
significant rise in industrial production (seven percent more than
in the same period last year), retail sales (a nominal increase of
19.1 percent and a real increase of 11.6 percent) and tourism, which
has seen an increase in the pre-season already. Liquidity in the
real sector has continued a trend of mild increase which started
last year and recovery trends have also been reported in the
construction industry. At the same time, salaries have been
increasing at a slower rate, with increases in the public sector
being much lower than in the production.
Although the crucial problem - unemployment - still remains, some
mild improvements have been reported in this segment as well,
Belosevic Matic said. Liquidity has been on the increase in the
financial sector, the banks have started changing their business
policies toward giving more loans to companies.
Foreign trade developments are still marked by negative trends - a
slight increase in exports of 1.4% and a continued high export rate
of 27%. These negative trends can also be seen in the export of
products to some markets, with exports to developed EU markets
being on the decrease (1.7%) and those to less developed markets on
the rise.
The first estimates of this year's BDP growth rate revolve around
four and five percent but the HGK believes the estimate is not
promising but rather insufficient for the development dynamics
Croatia needs.
HGK president Nadan Vidosevic informed the assembly about the
letter the HGK and the country's leading companies forwarded to the
government recently. The purpose of the letter was to warn the
government that it was necessary to devise a strategy of government
support for companies making a breakthrough on foreign markets due
to the opening up of the Croatian economy with the expansion of the
free trade zone and the country's admission to international
associations. Vidosevic believes the opening up of the market leads
to increased competition, which some domestic companies will not be
able to stand up to which is why they need assistance in
accessing new markets.
(hina) rml