ZAGREB, Dec 31 (Hina) - Croatia's economy will finish this year with the predicted growth rate of about or a little over three (3) percent but also with a record-high figure of the jobless which reached the number 377,000.
ZAGREB, Dec 31 (Hina) - Croatia's economy will finish this year with
the predicted growth rate of about or a little over three (3)
percent but also with a record-high figure of the jobless which
reached the number 377,000.#L#
2000 was marked by the economic recovery, good results in the
tourist season and the increase in export.
According to analysts, Croatia made great initial steps to come out
of a recession and structural crisis in 2000. But, it is also very
important to take measures in 2001 which will reverse unfavourable
trends such as the rising unemployment.
Experts also maintain that the achieved economic rise is not strong
enough.
The real Gross Domestic Product increased by four percent in the
first three months of 2000 and by 3.7 percent in the second quarter.
Judging from those results, the GDP growth rate is likely to be over
the initially expected 2.8 percent for the entire year.
However, a double-digit unemployment which has already reached the
22-percent rate, is one of the most sensitive and crucial issues to
be tackled in the coming period. The problem seems more burning in
view of announced bankruptcy procedure in some companies.
This problem can be settled only within structural reforms the
purpose of which is to enhance the efficiency and competitiveness
of the Croatian economy and support branches orientated towards
export.
2000 saw a mild increase in the export, following the stagnation in
a few previous years.
In the first 10 months of that year, the export of commodities
totalled over 3.6 billion dollars, rising by 2.3 percent as against
the same period in 1999. The import in the January-October 2000
period was worth $6.4 billion (with an increase of 1.7 percent). A
deficit in the trade was still high 2.7 billion, and the export
covered only 56.4 percent of the import.
Thanks to the good tourist season, a deficit in this year's current
account of the balance sheet will not be higher than five (5)
percent of the GDP.
The industrial output in the first eleven months of 2000 rose by 2.1
percent compared to the same period in 1999. Indicators in the
industrial production's rise show that this increase has not been
robust. Besides, negative tendencies in investment have not shown
signs of recovery.
The inflation, calculated on the basis of the annual increase of
retail prices, reached 7.7 percent in November.
The liquidity in the economy has improved. At the end of October
there were registered 20 billion kuna as unsettled obligations, and
this was by 6.5 billion kuna (24.6 percent) less than at the end of
December in 1999.
In addition, the Government paid back some 8.7 billion kuna of its
total debt valued 9.5 billion. But, a deficit in the state budget in
the first ten months of 2000 came to 4.9 billion kuna. This was the
consequence of the unbalanced dynamics and the absence of the
expected inflow of some capitalised yield. The deficit will be
covered by loans taken from abroad, but this will affect the
country's foreign debt which amounted to some 9.8 billion US
dollars at the end of September. Over two billion dollars should be
ensured in 2001 for the payment of instalments or the stock of
foreign debts in the coming year.
The liquidity in the country's foreign currency reserves is
satisfactory, and the Croatian National Bank holds 3.3 billion
dollars in the foreign exchange reserves. The banking sector has
been stabilised as well.
(hina) ms