ZAGREB, July 30 (Hina) - The recovery of the production and very good results of the tourist season, a significant increase in the Gross Domestic Product (GDP), a higher climb in prices and the conspicuous problem of illiquidity as
well as a high unemployment rate are some features of the current state of affairs in the Croatian economy. Croatian government officials have recently assessed that economic trends have definitely changed for better in the real sense.
ZAGREB, July 30 (Hina) - The recovery of the production and very
good results of the tourist season, a significant increase in the
Gross Domestic Product (GDP), a higher climb in prices and the
conspicuous problem of illiquidity as well as a high unemployment
rate are some features of the current state of affairs in the
Croatian economy.
Croatian government officials have recently assessed that economic
trends have definitely changed for better in the real sense.#L#
According to the Croatian National Bank (HNB) forecast, a rise in
the GDP is likely to surpass the expected 2.6 percent for this
year.
Official figures show that the GDP increased by four (4) percent in
the first quarter of 2000 as against the first three months of 1999.
The increase in the beginning of 2000 was the continuation of trends
registered in the last quarter of 1999.
Analysts of the Croatian Statistical Office view this trend as an
indicator that the Croatian economy has slowly been going out of a
recession and that this year will see a real rise in the GDP
following the real fall in the GDP last year.
The industrial production increased by 2.9 percent in the first
half of 2000 in comparison to the first half of 1999. June saw a
climb in the industrial production by 9.6 percent as against June
last year.
Following a jump at the beginning of this year, commodities export
has slowed down recently. In the first five months of 2000 the goods
export came to 1.66 billion US dollars or 0.1 percent higher as
against the same period last year. The increase in the first four
months of 2000 was 2.4 percent.
Trends in the export along with an 8.4-percent increase in the
turnover of the retail sales in the first four months reflect a
certain rise in the demand for domestic products. Finance Ministry
experts expect this will be intensified in coming months.
Reasons for optimism are good results in tourism this summer. In the
mid-July the number of tourists rose by 30 percent compared to the
same period last year. In addition, there are announcements that
foreign markets will be more and more open for Croatian products.
Latest trends in prices have been aggravated. Retail prices in June
rose by 1.9 percent as against May. This is attributed to an
increase in excise duties on petroleum products and alcoholic
drinks. Experts see this as a deviation owing to higher prices of
petroleum products and owing to tax changes rather than accelerated
inflation.
At the end of June the Croatian National Employment Bureau
registered the 342,100 jobless, or by 8,900 persons less as against
May or by 29,300 more as against June in 1999.
Ten days ago, the newly-appointed Governor of the Croatian National
Bank (HNB), Zeljko Rohatinski, said the gross foreign exchange
reserves of the central bank totalled the record 3.6 billion
dollars (on 18 July). If you take away the statutory reserves of
commercial banks, you'll see that the reserves of the central bank
have come to 2.9 billion dollars, he told a news conference.
This ensures the stability in maintaining the external liquidity,
although the country should pay about $670 million of the capital
sum of its foreign debts in the second half of this year, the HNB
governor explained then.
(hina) ms