CROATIA STILL NINTH AMONG BUSINESS RISK COUNTRIES

ZAGREB, Jan 8 (Hina) - According to risk estimates in conducting business with Croatian companies, Croatia for the third month in a row holds the ninth position among 24 countries of central and eastern Europe, Dun & Bradstreet (D&B), one of the leading world consulting companies, said in its January review. D&B's International Risk & Payment Review cites recent internal events, a negative slowdown in economic activity, and increased import as the causes for short-term concern in Croatia. A low inflation rate, on the other hand, alongside the government's endeavour to increase export in 1999, are marked as positive steps. Among the 24 assessed countries, Croatia shares the high risk factor with Romania, which means that entrepreneurs are advised to limit investments only to ventures with high money returns. The first among high money return countries remains neighbouring Slovenia, followed by the Czech Republic, Hungary, Poland, Estonia, Latvia, Lithuania, Slovakia, and Croatia. According to D&B's review, Croatia is witnessing an intensified need for import, and a monthly trade deficit increase of US$9 million. Last year the Gross National Product rose by 4.5 percent, this year D&B estimates it will grow by 4.2 percent, and by four percent in 2000. D&B does not expect a major increase in unemployment in Croatia; estimates are 16.5 percent in 1999, and 16 percent in 2000. The inflation rate in 1999 is expected to be 3.8 percent, and 3.2 percent in 2000. D&B is a consulting company assessing the state risk of conducting commercial business with companies in a given country. One of its agencies, Moody's, estimates the risk in a country's debt payment. (hina) ha