ZAGREB, April 2 (Hina) - Croatia's exports last year were o the level of those of the year 1994, while import was 49 per cent greater. Looking at the results of Croatian foreign trade in the last six years, it is noticeable that the
sum of annual foreign trade deficit reached US$20 billion. These are only a few indicators which show that economic policy led in the past several years had been favourable for imports and trade, but not production and exports.
ZAGREB, April 2 (Hina) - Croatia's exports last year were o the
level of those of the year 1994, while import was 49 per cent
greater.
Looking at the results of Croatian foreign trade in the last six
years, it is noticeable that the sum of annual foreign trade deficit
reached US$20 billion. These are only a few indicators which show
that economic policy led in the past several years had been
favourable for imports and trade, but not production and exports.
#L#
With the decline of production and technological progress, the
decreased amount of business has resulted in a more expensive, and
therefore, less competitive, production.
Moreover, it must not be ignored that during the privatisation
process significant export capacities had been destroyed.
Croatia's foreign trade in 1999 did not significantly change the
tendencies of the past several years, which is indicated by data on
further decrease of trade with the world.
The curbing of deficit by nine per cent (to still very high US$ 3.5
billion) is the result of the slowing down of exports and imports,
which was caused by the recession in Croatian economy.
Last year's exports, according to the State Bureau of Statistics,
amounted to US4.23 billion, which is 5.8 per cent less than the
previous year, while US$7.78 billion worth of goods were imported,
7.2 per cent less than in 1998.
Looking long-term, since 1992 when a US$136 million surplus had
been registered, Croatia's exports in the next several years
stagnated at a level of US$4.2 to 4.5 billion, while imports doubled
growing throughout these years (to a record US$9.1 billion in
1997), except for the last two years when it registered a fall.
Along with such tendencies in imports and exports trade deficit
grew (from US$2.88 billion in 1995 to a record US$4.9 billion in
1997), only to fall in the past two years to US$3.9 billion in 1998
and US$3.5 billion last year.
Last year's import decrease was influenced primarily by lesser
domestic demand which resulted in tangible decrease in the import
of raw materials, investment goods and consumer goods. These are
the true causes for the decrease of trade deficit.
The fact that last year's exports of US$4.279 billion were at the
level of those in 1998 is, according to the Croatian Chamber of
Commerce, a truly devastating piece of information, especially if
compared with other transitional countries, such as Slovenia, the
Czech Republic and Poland, which had increased their exports three
times in the same period.
Neighbouring Slovenia, for example, last year realised exports of
US$8.5 billion, while imports amounted to US$9.9 billion.
Slovenia's covering its imports by its exports was almost 86 per
cent, while the case in Croatia was merely 55 per cent.
Such tendencies in Croatia's foreign trade, by assessments of most
analysts, are a reflection of primarily the stagnation of the
entire Croatian economy, but also a technological fall back in
production capacities and Croatia's isolation and non-joining
European associations, the invalidating of a trade agreement with
Bosnia-Herzegovina (a 16.3 per cent fall in imports), and the
crisis on the Russian market where Croatia's exports have declined
by almost 58 per cent.
Exports into European Union countries, for which 48.7 per cent of
overall Croatian exports are set aside, have decreased by 3.4 per
cent last year (in excess of US$2 billion).
According to individual branches, the skeleton of Croatia's
exports, manufacturing industry (making up almost 97 per cent of
overall exports) was registered at a decline of 5.8 per cent.
The exports of all important branches of industry have fallen -- the
production of food and beverage, clothes, leather and ships (by
eight per cent).
The clothing industry exports have decreased by 10.5 per cent, but
is still yielding surplus of US$280 million.
However, a large amount of exports, especially to the most
important markets of Italy and Germany, is job processing in the
textile industry.
Job processing in the structure of Croatian exports have already
reached 43 per cent.
The competition from eastern Europe is increasing, so domestic
producers (with out-of-date technology, high expenses and tax
burdens) could face problems on these markets eventually.
(hina) lml