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FORMER ECONOMIC POLICY FAVOURED IMPORT RATHER THAN EXPORT

ZAGREB, March 20 (Hina) - Croatia's exports in 1999 were only at the level of 1994, whereas imports increased by 49 percent in comparison to 1994. Analysing the results of Croatia's foreign trade in the past six years, one can conclude that annual deficits in trade with foreign countries put together amount to as much as 20 billion US dollars. These are only some of the indicators which show that the economic policy implemented over the past several years favoured import and commerce instead of production and export. According to the State Institute for Statistics, Croatia's exports last year amounted to US$4.23 billion, which is 5.8 percent less than the year before, whereas imports amounted to US$7.78 billion, which is a 7.2 percent decrease in relation to 1998. This decrease in imports last year was caused primarily by a decrease in domestic demand, which resulted in a significant decrease in imports of pr
ZAGREB, March 20 (Hina) - Croatia's exports in 1999 were only at the level of 1994, whereas imports increased by 49 percent in comparison to 1994. Analysing the results of Croatia's foreign trade in the past six years, one can conclude that annual deficits in trade with foreign countries put together amount to as much as 20 billion US dollars. These are only some of the indicators which show that the economic policy implemented over the past several years favoured import and commerce instead of production and export. According to the State Institute for Statistics, Croatia's exports last year amounted to US$4.23 billion, which is 5.8 percent less than the year before, whereas imports amounted to US$7.78 billion, which is a 7.2 percent decrease in relation to 1998. This decrease in imports last year was caused primarily by a decrease in domestic demand, which resulted in a significant decrease in imports of production material, investment goods and consumer goods. That last year's exports of US$4.279 billion are on the level of 1994, according to the Croatian Chamber of Commerce, is really devastating information, especially if it is compared to other countries in transition, such as Slovenia, the Czech Republic, and Poland, which in the same period almost doubled their exports. For example, according to recently published data of the Slovene Institute for Statistics, in 1999 Slovenia realised exports amounting to US$8.5 billion, whereas its imports amounted to 9.9 billion dollars. The Slovene import/export ratio was 86 percent while in Croatia it was a mere 55 percent. Such developments in Croatia's foreign trade activities, according to most analysts, including those from the Croatian Chamber of Commerce, reflect primarily the stagnation of the country's entire economy as well as the fact that its production facilities are lagging behind in technology; they also reflect the country's isolation, its failure to join European integration processes, the cancellation of a trade agreement with Bosnia-Herzegovina (which caused an export decrease of 16.3 percent) and the crisis on the Russian market, where Croatian exports fell by almost 58 percent. Exports to the European Union countries, which account for 48.7 percent of the entire Croatian export, last year decreased by 3.4 percent (to just above two billion US dollars). (hina) mm rml

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