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Deputy PM Mimica says GDP decline wasn't unexpected

Autor: half
RIJEKA, Aug 31 (Hina) - The Deputy Prime Minister for the Interior, Foreign and European Policy, Neven Mimica, said in Rijeka on Friday the 2.1% GDP decline in the second quarter was not unexpected and that thanks to the tourist season and the first results of smaller investments, by the end of the year growth could be zero and the negative effects from the first half of the year annulled.

Mimica said Q2 2012 was the worst quarter in several years and that a considerable downturn was almost to be expected.

He said the government's economic policy was based on reducing state spending, establishing a balance between that reduction, cuts and growth, changing the value system of economic recovery, and increasing the dimension of solidarity.

Growth is no longer possible on personal spending, he said. This model needs to be changed according to investments in economic sectors and production, which raises the question of which industry to invest in to kickstart the economy.

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