According to experts from the institute, inflation should remain at a low rate, approximately 2.5 per cent on the average.
In the latest issue of the Croatian Economic Outlook Quarterly, the Institute of the Economics said that the main economic risks in 2007 could be a possible slowing down of the implementation of structural reforms and the adoption of popular measures aimed at preventing the growth of loans and external debt.
The Croatian Economic Outlook Quarterly also brings assessments and forecasts of the Institute of the Economics concerning economic movements in 2006 and 2007.
In 2006, the Croatian the growth rate of the Croatian economy was 4.8%, which is the result of a significant increase of investments and moderate growth of personal and state spending.
The Institute of the Economics last year also marked a drop in the unemployment rate, a slower inflation rate and a better fiscal position.
The Institute warned that the achieved pace of the economic growth could be jeopardised by a poor foreign trade balance, further growth of the external debt and strong loan activity.
Fiscal movements last year indicate the continuation of consolidation of public finances with a deficit of 3 percent of the GDP, the institute said for the Croatian Economic Outlook Quarterly.