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THIS YEAR'S ECONOMIC GROWTH COULD EXCEED EXPECTATIONS - NATIONAL BANK

$ ZAGREB, Sept 3 (Hina) - The Governing Council of the National Bank of Croatia, under the chairmanship of the Bank's governor Marko Skreb, on Wednesday held a session, discussing financial and economic trends in the past months.
- NATIONAL BANK $ ZAGREB, Sept 3 (Hina) - The Governing Council of the National Bank of Croatia, under the chairmanship of the Bank's governor Marko Skreb, on Wednesday held a session, discussing financial and economic trends in the past months. #L# All available indexes speak about the revival of economic activity, so this year's economic growth could exceed expectations. Industrial production in seven months marked a growth of 5.2 percent, the same growth in real value in retail, construction industry marked a 15.5% increase in working hours in the first half-term, and tourism exceeded all expectations. If such a trend continues, with the maintenance of economic macroeconomic stability, indexes which are not satisfactory, primarily employment and export, could improve. Statistics show that after July's 0.3% decrease in retail prices, August brought a 0.8% increase in relation to the month before. The total increase in prices for the first eight months this year was 3.6 percent in relation to + the same period last year, which remains within the envisaged inflation framework. According to the Governing Council's estimate, there would be no substantial increase in inflation for now. The Governing Council held that special attention had to be turned towards the balance of payment movements, as well as the uncovering the focal point and cause of interior insolvency which was reaching concerning stages. The purchase of foreign currency during the main tourist season was carried out without standstill and the rate of the kuna remained stable. The Croatian National Bank invested about US$ 900 million into the purchase of foreign exchange in the past two months, and has purchased US$ 141 million worth of foreign exchange. During a discussion about the situation in Croatian banking, the Council recalled with satisfaction that Croatia had not experienced a bank crash such as have other countries in transition, and that the general picture of the banking system had improved. (hina) lm jn 032024 MET sep 97

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