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CROATIAN NATIONAL BANK DISCUSSES ECONOMIC, FINANCIAL DEVELOPMENTS

ZAGREB, June 2 (Hina) - The Croatian National Bank (HNB) Council on Wednesday held a session under the chairmanship of Governor Marko Skreb. The Council discussed the latest economic and financial developments and adopted several decisions within its jurisdiction, the HNB reported. Industrial production in the first four months of 1999 was three per cent lower than in the last year, the real turnover in retail trade in the first quarter was lower by 7.2 per cent, and the number of overnight stays fell by 9.8 per cent. Decreased economic activities have also been reported in traffic and construction industry in relation to the first months of 1998. There were 318,657 unemployed persons in Croatia in late April, which is 10.7 per cent more than the year before. A total of 1,343,412 persons were employed in the same period, which is 0.3 per cent less than in the same month last year
ZAGREB, June 2 (Hina) - The Croatian National Bank (HNB) Council on Wednesday held a session under the chairmanship of Governor Marko Skreb. The Council discussed the latest economic and financial developments and adopted several decisions within its jurisdiction, the HNB reported. Industrial production in the first four months of 1999 was three per cent lower than in the last year, the real turnover in retail trade in the first quarter was lower by 7.2 per cent, and the number of overnight stays fell by 9.8 per cent. Decreased economic activities have also been reported in traffic and construction industry in relation to the first months of 1998. There were 318,657 unemployed persons in Croatia in late April, which is 10.7 per cent more than the year before. A total of 1,343,412 persons were employed in the same period, which is 0.3 per cent less than in the same month last year. Despite this kind of economic environment, the supply of net salaries paid in March registered real growth of 6.1 per cent in relation to the same month last year, and a 5.2 per cent increase in the first quarter compared to the same period last year. There have been no considerable oscillations in the kuna exchange rate for some time. The last month was completed with gross foreign currency reserves amounting to about US$2.6 billion, which is more than at the end of April. Trade deficit in the first quarter (expressed in dollars) was decreased by 17 per cent, but with a lower rate of trade with other countries: exports decreased by 11.1 per cent and imports by 13.7 per cent in comparison to the first quarter last year. The data on price movements in May are not available yet but no changes in relation to the rates from previous periods are expected. Financial authorities are closely following those financial indicators which can be a sign that there will be no deeper recession and those on developments in the banking sector. The indicators for the banking sector include the slowing down of the downward trend in the industrial production, improved liquidity in the banking sector and demand for cash money. According to the latest data, the outflow of foreign currency deposits, reported in the past two months, has abated. A considerably improved relation between income and expenditures in the state budget was also reported in April. It helped decrease the budgetary deficit to some 80 million kuna. Therefore, there was no additional indebtedness of the state with the central bank, but it still stagnates at a relatively high 1.3 billion kuna. (hina) jn rml

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