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CROATIAN GOVERNMENT TO STIMULATE PRODUCTION

ZAGREB, Nov 3 (Hina) - Croatian Prime Minister Nikica Valentic told a government session today that the government would concentrate on stimulating production growth. His deputy, Borislav Skegro, said data from the last 12 months showed that Croatia would post the lowest inflation in Europe by the end of this year. Skegro said that in the last 12 months retail prices had dropped by 2.2 per cent and manufacturer prices by 12 per cent. The session heard that the preliminary results of a survey conducted among Croatia's largest exporters showed that taxes and the complexity of the financial system, and not foreign exchange policy, presented major problems. (hina) jas vm 031852 MET nov 94

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