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UNFAVOURABLE EXPORT TRENDS IN CROATIA

ZAGREB, Sept 30 (Hina) - Deficit in Croatia's foreign trade in the first seven months of this year has been reduced by 13.5 per cent in relation to the same period last year. The decrease in trade deficit is the result of not only a decreased imports, but also in exports. The amount of exported goods in the first six months was US$2.396 billion, which is 5.2 per cent less than in the same period last year, while imports decreased by 9.2 per cent, or US$4.448 billion, the State Bureau of Statistics said. A lack of demand for Croatian goods abroad was felt in almost all dominant export markets, the Croatian Chamber of Commerce warned. Croatian exports into the European Union marked a 3.2 per cent decrease, by 8.1 per cent into CEFTA member-countries and 21 per cent into developing countries. Croatia's exporters have in the past years been increasing the placement of goods on European "soft" markets, primarily thanks to the markets
ZAGREB, Sept 30 (Hina) - Deficit in Croatia's foreign trade in the first seven months of this year has been reduced by 13.5 per cent in relation to the same period last year. The decrease in trade deficit is the result of not only a decreased imports, but also in exports. The amount of exported goods in the first six months was US$2.396 billion, which is 5.2 per cent less than in the same period last year, while imports decreased by 9.2 per cent, or US$4.448 billion, the State Bureau of Statistics said. A lack of demand for Croatian goods abroad was felt in almost all dominant export markets, the Croatian Chamber of Commerce warned. Croatian exports into the European Union marked a 3.2 per cent decrease, by 8.1 per cent into CEFTA member-countries and 21 per cent into developing countries. Croatia's exporters have in the past years been increasing the placement of goods on European "soft" markets, primarily thanks to the markets of Bosnia-Herzegovina and Russia. This year, however, because of the annulment of the non-customs union between Croatia and Bosnia-Herzegovina, export into this country has been decreased by 10.5 per cent and in the first six months amounted to about US$315 million. Exports onto the Russian market were also decreased by 62.7 per cent, to US$48.3 million. Data on the structure of Croatian exports indicate an increasing amount of job-processing. Active exports of job-processing have already passed 49 per cent of the total exports, while they amounted to 35.1 per cent in the first seven months of last year. Job-processing, via which companies in fact sell their work force and space, is the only aspect which registered a rise by 14 per cent, in excess of a billion dollars. At the same time, regular exports, worth US$1.2 billion in the first seven months, has been decreased by 14.3 per cent. The part of regular exports has lessened from 56.3 per cent in the first seven months of last year to 50.9 per cent in the same period this year. Croatian economy, burdened by illiquidity, technologically obsolete production and high tax burdens is becoming less and less competitive on the demanding world market, the Croatian Chamber of Commerce Sector for Macroeconomic Analyses said, stressing that one of the biggest problems of Croatian exporters was that it was not a member of the World Trade Organisation and the Central European Free Trade Agreement. (hina) lml jn

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