Deputy Prime Minister and Minister of Regional Development and EU Funds Branko Grcic assessed on Thursday that the projections of the European Commission confirmed what macroeconomic indicators are saying and that Croatia is recovering rapidly.
In a press release in Bansko Dvore, Grčić recalled that key indicators are growing - the industry grew more than 2008., The tourist season was the best so far, so it is particularly emphasized in the EC report, and high growth is also recorded in the export of goods and services, as a result of which, after years of the deficit, Croatia has a positive balance of payments.
The European Commission on Thursday increased its Croatian economic growth forecast for this year at a rate of 1,1 compared to the May forecast when it expected growth from the 0,3 percent, but called for structural reforms to stop public debt growth. According to the Commission's estimates, next year GDP growth should accelerate to 1,4, percent, and 2017. year on 1,7 percent.
"All this confirms that Croatia is recovering fast this year and in 2016. we can expect even better results, "said Grčić.
In particular, he pointed out EC estimates on the growth of investments for the 2,4 percent, saying that it also speaks about the changed, more positive perception of Croatia with European investors.
Labor and Pension System Mirando Mrsić, referring to projections from his office, said the EC has confirmed positive developments in the field of employment, ie a fall in unemployment and employment growth, especially among young people.
Employed are 14 thousands more than last year, and the number of unemployed is the lowest in the back years. In addition, 84 thousands of young people got jobs, over ten 30 thousands of contracts were awarded for an indefinite period of time, and for the first time the total number of contracts is growing indefinitely.
All this, Mrsić pointed out, clearly shows that the stories of 100 or 200 thousands of expatriates from Croatia do not 'keep water' and added that the departure of people to other countries is normal, especially after the opening of European borders, and that even before the crisis 10 to 16 thousand people every year went to other countries.
Lalovac: Public debt is growing, but significantly slower
Finance Minister Boris Lalovac pointed out, however, that the Commission estimated the deficit for this year at the 4,9 percent of GDP, but that its estimates say it could be smaller, ie at the 4, 5 percent of GDP, due to the positive effects of all economic developments on taxes and other non-tax budget revenues, as well as numerous savings on the expenditure side of the budget.
He also stated that VAT revenues from the beginning of the year were higher by HRK 2,5 and by one billion excise, so that the deficit (cash methodology) currently amounts to about 7,5 billion, ie the budget is still in the primary surplus .
The EC rating on high public debt was also rated positively, as this year's estimate has been reduced by 90,5 to 89,2 percent of GDP, and in the next with 93,09 at the 91,7 percent of GDP.
Thus, says Lalovac, public debt is growing but significantly sluggish because large restructuring processes have been completed, such as those for companies created by HŽ Holding and there is no longer any need for state guarantees.
From a part of the EC Report on the Consequences of Conversion of Loans to 'Swiss' in Eurek Loans, Lalovac has outlined how it will positively influence consumption, due to further income redeployment, especially middle-aged young people.
For EC estimation of 600 to 700, the HRK million of lower income from banks' tax revenues, he said, will not have a big impact on public finances, and that the positive effect on spending will be far greater.
In the words of the Deputy Prime Minister, the solution of the problem of Swiss loans, the rehabilitation of the Adriatic bank and similar government decisions, in fact, eliminates systemic risks of exploding public debt, and the expected increase in economic growth and higher budget revenues also eliminates the risk of increasing the deficit.
"Only growth and higher incomes can stabilize the budget deficit and public debt, and possible cuts mean lower economic growth," said Grčić, adding that, according to all indicators of this year, a higher GDP growth rate should be expected from EC estimates and up to the 1,5 percent, which is, says "decent rate".