ZAGREB, Oct 19 (Hina) - Problems causing Croatia's poor export of goods are of a structural nature. A long-standing failure to make adequate investments in the economy, particularly in exports, has, along with other problems on the
domestic market, led to a situation where domestic exporters have few quality finished products to offer on foreign markets. What leads to this conclusion is developments in Croatia's trade with the world, which is marked by stagnating exports and growing imports and a deficit in foreign trade, analysts at the Croatian Chamber of Commerce (HGK) say. According to the Statistics Bureau, in this year's first eight months Croatia exported goods worth slightly more than three billion dollars, which is a 3.1% increase as against the same period last year. Imports in the same period rose by 20.7 percent to six billion dollars. The trade deficit of three billion dollars is t
ZAGREB, Oct 19 (Hina) - Problems causing Croatia's poor export of
goods are of a structural nature. A long-standing failure to make
adequate investments in the economy, particularly in exports, has,
along with other problems on the domestic market, led to a situation
where domestic exporters have few quality finished products to
offer on foreign markets.
What leads to this conclusion is developments in Croatia's trade
with the world, which is marked by stagnating exports and growing
imports and a deficit in foreign trade, analysts at the Croatian
Chamber of Commerce (HGK) say.
According to the Statistics Bureau, in this year's first eight
months Croatia exported goods worth slightly more than three
billion dollars, which is a 3.1% increase as against the same period
last year. Imports in the same period rose by 20.7 percent to six
billion dollars.
The trade deficit of three billion dollars is the same as total
exports, and the export/import ratio is only 50%.
Such unfavourable indicators are primarily a reflection of
stagnating exports and a dynamic rise of imports, which were
increasing at an average monthly rate of 5% in the period between
the beginning of this year and August.
The increase in this year's imports has been caused primarily by the
import of vehicles and machines, which account for 34% of all
imports, which is a 27.5% increase as against last year's first
eight months. The increase in imports was also caused by the import
of production materials and consumer goods, which rose by 19.4 and
15.1 percent as against last year.
Export developments in the said period were much less dynamic. This
year's exports increased by a mere 3.1% although a number of export
opportunities opened up for Croatia early this year, including
lower customs rates, a free trade agreement with Bosnia-
Herzegovina, a textile agreement with the EU, and a
disproportionate trade regime with the EU still being in force.
HGK analysts believe these developments point to structural
problems in Croatia's exports.
Another indicator of a lack of finished products for export is the
fact that job-processing accounts for an increasingly large part of
the export structure - more than 58% of Croatia's exports (as
against last year's 52.5%).
(hina) rml