ZAGREB, Apr 14 (Hina) - The Croatian National Bank (HNB) Council on Wednesday discussed the economic and financial situation in the past period, as well as the starting points and outlines of the monetary policy for this year's second
trimester. According to a statement released after the session, the real growth of Croatia's gross product in 1998 was 2.7 percent, in industrial production the real growth was 3.7 percent, in trade 2.2 percent, and in tourism 3.2 percent. Economic activities have slowed down since the beginning of the year, which is a continuation of a tendency which began in the last trimester of 1998. A reduction in industrial production, trade and transport services was accompanied by higher commodity stockpiles and a higher unemployment rate, and a drop in export and import in the first two months of this year. Retail prices have moved as expected, with an increase of 0.4 percent in March,
ZAGREB, Apr 14 (Hina) - The Croatian National Bank (HNB) Council on
Wednesday discussed the economic and financial situation in the
past period, as well as the starting points and outlines of the
monetary policy for this year's second trimester.
According to a statement released after the session, the real
growth of Croatia's gross product in 1998 was 2.7 percent, in
industrial production the real growth was 3.7 percent, in trade 2.2
percent, and in tourism 3.2 percent.
Economic activities have slowed down since the beginning of the
year, which is a continuation of a tendency which began in the last
trimester of 1998.
A reduction in industrial production, trade and transport services
was accompanied by higher commodity stockpiles and a higher
unemployment rate, and a drop in export and import in the first two
months of this year.
Retail prices have moved as expected, with an increase of 0.4
percent in March, and an annual growth expected at 3.5 percent. The
rate of the kuna has been stabilised, and the central bank had to
intervene less frequently than previously.
Unfavourable movements in the real sector have been affecting
financial aspects with increasing frequency. The state's debt to
the central bank and business banks has narrowed the room for
granting loans to companies and the population.
The priority at the moment is fiscal adaptation to the real economic
environment. In the contrary, the HNB Council unanimously assessed
the monetary policy's elbow room in further maintaining the
stability of prices and the kuna rate will become increasingly
limited.
The HNB Council today also reached several concrete decisions which
elaborate and strengthen the principles of financial order in
internal and foreign financial business.
These include a decision which stipulates that a foreign company,
when opening or using its account in Croatia, must submit proof that
it is indeed performing the activity for which it has been
registered. The aim of the decision is to prevent illegal export of
capital via Croatian accounts of fictitious foreign companies.
(hina) ha jn