ZAGREB, Aug 25 (Hina) - A more active regional development policy which would include the possibility of launching three or four development projects in the coming period is one aspect of the government's economic programme for the
autumn, Finance Minister Mato Crkvenac has said. The government's goal is to step up economic development with emphasis on increased employment. This year the Gross Domestic Product (GDP) is expected to rise by four percent and economic growth by five or more percent over the next year or two. As for investments, Crkvenac, who also heads a government commission for regional development, has said about 100 projects are currently underway. There are, however, considerable differences among certain regions. Investment activity is livelier in northern Croatia, namely Cakovec and Varazdin, and the Kvarner and Istria regions in the northern Adri
ZAGREB, Aug 25 (Hina) - A more active regional development policy
which would include the possibility of launching three or four
development projects in the coming period is one aspect of the
government's economic programme for the autumn, Finance Minister
Mato Crkvenac has said.
The government's goal is to step up economic development with
emphasis on increased employment. This year the Gross Domestic
Product (GDP) is expected to rise by four percent and economic
growth by five or more percent over the next year or two.
As for investments, Crkvenac, who also heads a government
commission for regional development, has said about 100 projects
are currently underway. There are, however, considerable
differences among certain regions.
Investment activity is livelier in northern Croatia, namely
Cakovec and Varazdin, and the Kvarner and Istria regions in the
northern Adriatic. Differences among regions are considerable,
which in great part depends on local factors.
According to the minister, some regions are happy with government
policy. These are counties and regions whose message to the
government is: do not touch us, just enable our companies to collect
money for what they actually produce, and make the rule-of-law
better by expediting court proceedings.
Others, who are very loud, find fault with everything in the entire
policy. They constantly ask the state for money, capital,
investments, says Crkvenac.
Financial statements show that money in Croatia is moving
southwards even though results do not show it. In some regions,
deposits have increased - both citizens and companies have money,
but adequate business activity is absent. Trends in the economy are
positive and enable development and a busy investment activity, but
this differs from region to region and is the result of local
factors.
Crkvenac says the government will support entrepreneurial
activity, ensuring better conditions by improving the rule-of-law
and administration and more actively fighting grey economy. An
important point for businessmen is that in the coming period taxes
will no rise and some should be cut.
A 4.2-percent growth of the GDP in this year's first three months is
the result of a revived investment activity. After nine months of
consecutive decline, investment in fixed capital in this year's
first trimester rose by 11.6 percent.
If the positive trend continues, it could be the start of a long-
term growth and a new investment cycle, according to an analysis the
Privredni Vjesnik business bulletin conducted for the Croatian
Chamber of Commerce. A significant aspect is the fact that the
introduction of new technologies is one of the primary investment
goals.
(hina) ha