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NATIONAL BANK: NO ADDITIONAL MEASURES NEEDED IN MONETARY POLICY

ZAGREB, Jan 19 (Hina) - Statistical data show Croatia's Gross National Product (GNP) in the third trimester of 1999 dropped by 0.8 percent in comparison to the same period the year before, the Croatian National Bank Council said in a statement on Wednesday. As regards last year's first nine months, the GNP dropped by one percent in comparison to the same period in 1998. The basic indicators of macroeconomic stability remain within the satisfying range, and do not require alterations or additional measures in monetary policy. The rate of inflation in retail prices in 1999 was 4.4 percent, lower than in 1998 when Value Added Tax was introduced, but higher than in past years. The costs of living in 1999 rose by 3.6 percent, while manufacturer's prices rose by 5.9 percent, considerably affected by oil products. Throughout 1999, Croatia's kuna depreciated by five percent a
ZAGREB, Jan 19 (Hina) - Statistical data show Croatia's Gross National Product (GNP) in the third trimester of 1999 dropped by 0.8 percent in comparison to the same period the year before, the Croatian National Bank Council said in a statement on Wednesday. As regards last year's first nine months, the GNP dropped by one percent in comparison to the same period in 1998. The basic indicators of macroeconomic stability remain within the satisfying range, and do not require alterations or additional measures in monetary policy. The rate of inflation in retail prices in 1999 was 4.4 percent, lower than in 1998 when Value Added Tax was introduced, but higher than in past years. The costs of living in 1999 rose by 3.6 percent, while manufacturer's prices rose by 5.9 percent, considerably affected by oil products. Throughout 1999, Croatia's kuna depreciated by five percent against the German mark. The depreciation of the nominal effective currency rate of the kuna was 11.2 percent, as a result of the 22.4 percent increase in value of the U.S. dollar. Bank crediting in 1999 marked an insignificant rise. Monetary indicators point to the absence of an economic recovery expected towards the end of 1999. (hina) ha mm

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