CROATIA'S BUDGET DEFICIT IN 1997 LOWER THAN PLANNED

( Editorial: --> 2853 ) ZAGREB, Jan 11 (Hina) - The Croatian budget deficit for 1997 is much lower than planned. According to a report of the Croatian Government's Communications Office, the budget deficit is at US$175 million only 38 per cent of what was planned and amounts to less than one per cent of the gross domestic product. In November 1997, industrial production was 6.5 per cent higher than in the same month in 1996, while between January and late November it was 5.5 per cent higher than in the same period a year before. Retail prices in December 1997 rose 3.8 per cent in relation to December a year before, while the cost of living rose 4.9 per cent. The average growth of retail prices in relation to 1996 was 3.6 per cent, and 4.1 per cent as regards the cost of living. The foreign exchange of the Croatian National Bank in late September amounted to US$2.49 billion, which is US$45.4 million more than the month before, and US$192.7 million more than in September 1996. Croatia's export between January and November 1997 reached US$4.02 billion, which is 0.2 per cent more than in the same period a year before. According to the State Bureau of Statistics, import in 1997 amounted to US$8.02 billion, or 14.3 per cent more than in the same period in 1996. Croatia's export to European Union countries between January and November 1997 reached US$2.08 billion, or 0.7 per cent more than in the first eleven months of 1996. Import from those countries was 14.9 per cent higher, reaching US$4.76 billion. Croatia's principal trade partners were Italy and Germany. The biggest commodity exchange with a country in transition was achieved with Slovenia and Bosnia-Herzegovina. According to data of the Croatian National Bank, Croatia's external debt in late October 1997 reached US$5.9 billion, which is US$372.3 million more than in September. The Croatian Ministry of Finance says the national debt in mid- October 1997 reached US$2.3 billion. The short-term debt amounts to US$95million, while the medium-term and long-term debts reached US$2.2 billion. The deficit on Croatia's balance on current account in the first six months of 1997 was 2.3 times higher than in the first six months of 1996. The surplus realised through financial transactions was five times higher. The deficit on the balance on current account in the first six months of 1997 was US$1.55 billion, while in late June 1996 it amounted to US$662.3 million. The surplus in financial transactions was US$895.5 million, while in the same period in 1996 it amounted to US$172.4 million. According to the Croatian Employment Office, Croatia had 1.34 million employed persons in November 1997, which is 1.2 per cent less than in October. The exact number of unemployed persons was 281,047, which is 5.4 per cent more than in November 1996. The average net disposable income in Croatia in October 1997 was US$380, which is 13.5 per cent higher than in October 1996. (hina) ha jn 111504 MET jan 98