NEGATIVE TRENDS POSSIBLE IN CROATIAN ECONOMY NEXT YEAR

OPATIJA, Nov 8 (Hina) - The director of the Croatian Employers' Association (HUP), Zeljko Ivancevic, said in Opatija on Thursday that several scenarios could be presented for Croatia's economy next year, but the most probable was the one indicating negative trends and further worsening of the situation. At a HUP symposium on novelties in the taxation system in the economy, Ivancevic stressed that it was to be expected that the growth of the Gross Domestic Product next year would be at about two percent instead of 3.5 percent as the government expects it to be. Such a lower growth rate is particularly to be expected in effects of global events on Croatian economy, he assessed. Croatia needs a consensus on visions of the development of the economy which will contain clear programme guidelines and measures for their implementation. Croatian economy, Ivancevic said, is completely non-competitive because of its much too high input costs and is subjected to over- administration. If new jobs are to be created, we need to overcome these barriers and set good legal frameworks, Ivancevic stressed. This will be a long and complex process, thus there is no time to lose, he added. Ivancevic asserted that the economy should not be burdened by new or higher taxation as the existing tax burden was too high as it is. Only if economic growth is secured it is possible to expect an increase in the social rights of workers, he said. (hina) lml