ZAGREB, March 14 (Hina) - Analysts with Raiffeisen Zentralbank Austria (RZB) estimate that Croatia's Gross Domestic Product (GDP) will in the year 2000 increase by 0.7 percent, which should enable Croatia to start leaving the state of
recession only at a rather slow pace. According to RZB estimates, GDP in Croatia should in the year 2001 increase by 2.5 percent, amounting to US$21.6 billion.
ZAGREB, March 14 (Hina) - Analysts with Raiffeisen Zentralbank
Austria (RZB) estimate that Croatia's Gross Domestic Product (GDP)
will in the year 2000 increase by 0.7 percent, which should enable
Croatia to start leaving the state of recession only at a rather
slow pace.
According to RZB estimates, GDP in Croatia should in the year 2001
increase by 2.5 percent, amounting to US$21.6 billion. #L#
The report on Croatia, as well as those on other countries in the
region, was published in the March issue of RZB's Equity Insights
magazine. The analysis also includes assessments by RZB analysts
regarding developments on Croatia's financial market, and
forecasts for this and the next year.
According to the report, the banking sector in Croatia is
consolidating and interest rates are expected to decrease
slightly. The first estimates also forecast that tourism will
recover significantly this year, which gives rise to expectations
of a larger tourism income and further privatisation of banks and
the Croatian Telecommunications. All this should secure
sufficiently high exchange reserves so that the Croatian National
Bank could prevent the further devaluation of the kuna.
Such developments give rise to optimism regarding the Croatian
market, the analysts say. A slight increase of the CROBEX index is
expected in March thanks to the first concrete moves of the Croatian
government. The RZB analysts are even more optimistic in their
forecasts for the second quarter of this year, because Croatia is
expected to join the World Trade Organisation in that period.
The Varazdinska and Rijecka Banks were the most successful
institutions on the capital market in February.
Apart from Rijecka Banka shares, RZB analysts also recommend the
purchase of shares of 'Karlovacka Pivovara' brewery, 'Podravka'
food processing industry, 'Viktor Lenac' shipyard, and 'Pliva'
pharmaceutical company, whereas they take a neutral stand
regarding the purchase of the shares of 'Plava laguna' hotel
company, and the Privredna, Varazdinska, and Zagrebacka Banks.
(hina) mm rml,