PORGES DISCUSSES ECONOMIC AND SOCIAL SITUATION

ZAGREB, June 16 (Hina) - Croatian Economy Minister Nenad Porges on Wednesday presented to the Croatian Parliament House of Representatives a Report on the situation in economy. A future economic growth can be sustained only by leading a macroeconomic policy which gives priority to measures of strengthening open economy and a quick integration into European associations, Porges said. Since its independence Croatia has been facing aggression, transitional problems, technological outdatedness, structural problems, and the loss of traditional markets. Despite all this, a continued economic growth has been registered until the end of last year. However, the end of last year and the beginning of this year was marked by a slowing down of the dynamics of economic growth, Porges said, adding certain structural problems had surfaced. There problems intend to be solved by the Government through active measures of developmental and export-orientation economic policy. A part of the answer must be detected in direct foreign investments, he said, stressing foreign investments had reached US$2.2 billion by the end of last year. Porges warned about problems in certain sectors of industry, especially manufacturing industry, which suffered significant war damage. Industrial production in the first three months of this year decreased by 3.6 per cent than in the same period last year, he said. However, he stressed the most recent indicators showed this negative trend was coming to a halt. The Government has through various measures helped a total of 173 companies and kept some 80,000 jobs, Porges said. The goals of the Croatian Government are to increase exports, instigate export production and accession into European integration processes. According to his careful assessment, the technical aspect of negotiations on Croatia's accession into the World Trade Organisation could be completed by the end of July. (hina) lml jn