HGK SAYS 1997 YEAR OF ECONOMIC STABILITY AND MILD RECOVERY

( Editorial: --> 6813 ) ZAGREB, Dec 8 (Hina) - The Assembly of the Croatian Chamber of Commerce (HGK) held a session on Monday at which it discussed the current economic situation, results of the national campaign "Let's Buy Croatian" and a programme of its activities for next year. "The business year 1997 saw economic stability and mild recovery, and although the consequences of the war are still felt in all segments of the economy, the outlines of a peace-time market economy are becoming more visible and recognisable," HGK President Nadan Vidosevic said in an exhaustive report. Vidosevic said that the main problems troubling the Croatian economy were illiquidity, a high unemployment rate, the need to defend the lower limit of the exchange rate to protect exports and restructuring of the public sector. He added that the issue of introducing the value added tax next month was topical. Industrial output has been on the increase. In the first ten months of this year production rose by 5.4 per cent compared to the same period last year. Prices were stable throughout the year, with October retail prices being 3.3 per cent higher than in the same month last year. Vidosevic paid particular attention to the foreign trade deficit which totalled $3.5 billion in the first ten months, which almost equalled Croatia's overall exports generated in the same period. In the first ten months Croatian exports have been only 1.9 per cent higher than in the same period last year, while imports increased by 16.3 per cent. The report also cited good results in the tourist industry, which were evident in a 43 percent increase in overnight stays in comparison to last year and in the arrival of 36 per cent more tourists. Foreign currency reserves have increased by 15.5 percent compared to December last year, reaching about $5 billion, Vidosevic said. (hina) vm jn 082000 MET dec 97