The Croatian economy is moving forward fast and the third quarter is likely to be even more successful than the other, primarily thanks to a good tourist season, Deputy Prime Minister Branko Grcic said on Saturday at a news conference announcing a new tax breakdown if SDP gets another mandate.
"In the next period of this Government or, more appropriately, SDP in the new government can expect a new step in increasing the pay of citizens or a new phase of tax redistribution. It has been proven that this will affect the revival of our citizens' consumption and economic growth, "said Grčić, presenting the details of the Gross Domestic Product (GDP) report.
In detail, it analyzed the new data of the Central Bureau of Statistics (CBS), which announced on Friday that in the second quarter GDP increased by 1,2 percent over the same period last year, more than in the previous quarter and at most since 2008. years.
Grcic stresses that all components of GDP have increased, from personal consumption, exports and government spending, to investment.
Personal consumption, the largest component of GDP, grew in the last quarter of the year by 0,6 per annum, and Grcic explains that this growth is a consequence of the tax breakdown at the beginning of the year, which is why salaries for more than a million people have risen.
He also pointed out that investments in the last quarter rose for the first time by 2008, thanks to the greater withdrawal of EU funds. According to CBS data, in the last quarter of the investment rose to a 0,8 percent on an annual basis.
He also noted that international commodity exchange in the first six months of this year increased by 11,5 percent and that export coverage with 49 percent increased to 61 percent. "The Croatian economy is moving forward, even faster than the expectations of renowned analysts. The prospects are good, the third quarter could be very good, primarily because of the extraordinary tourist season and every next quarter will be better than the previous one, "believes Grčić.
He argued that Croatia is 2013. and 2014. for the first time it had a positive balance of payments and expects this trend to continue this year.
He also warned of the growth in retail trade and the real growth of average gross earnings, which was in June this year the 8207 kuna, 2,3 percent more than in June last year, while the net salary in the same comparison grew 4,5 percent, to 5810 kuna.
Grčić also emphasizes the recovery of the construction sector, which, he says, contributed to the recovery of investment after six, seven years. "First time from 2008. We have a positive construction rate for two months in a row, "said Deputy Prime Minister.
Negative comments from the Croatian Employers' Association, Grčić said that HBOR had 75 percent higher credit activity in the first six months of this year compared to the same period last year.
He also recalled that Croatia recently withdrew 173,6 million euros more than he had paid in the EU budget, according to the recently published European Commission financial report. He points out that this surplus is considerably higher than in 2013, as all IPA funds have been contracted and how, on withdrawal of funds from EU funds, "this government is far more successful than the former HDZ".
He also wiped out of the objections from the opposition that Croatia would continue to take for a few decades if the crisis continues. "It is not fair that this comes from people whose mandate the Croatian economy has fallen ten percent. These 2 billion more investments in six months only from EU funds, which is a 6 percent increase in total investment, is not a direct contribution of this Government to the revival of the most important component of GDP, which is precisely the investment, "said Grcic, dismissing his assessment that the economy increased by inertia, not because of the work of the Government.
Such opinion, among other things, was presented by the president of the state, Kolinda Grabar Kitarović, who announced that the latest GDP growth was based on inertia, but Grcic is convinced that its analysts do not have a good insight into what is happening in the state.
Keeps in mind that the latest GDP growth leaves more room for consolidating public finances and stopping public debt.
Minister of Tourism Darko Lorencin, who also does not suspect that GDP will rise in the third quarter due to, say, excellent tourism results in July, spoke at the press conference in the Baroque court.
He said that Croatia got 25 brand new or refurbished hotels this year, and how planned this year's investment in tourism amounts to 483 million, 20 percent more than last year.
He also noted the growth in the number of domestic tourists by five percent and the increase in tourism revenues, which in the first quarter of the year amounted to 339,7 million, almost fourteen percent more than last year.
He reiterated that this year's tourist revenues will be about eight billion euros, or around 9,3 billion if we add to this the domestic consumption.
Labor and Pension System Minister Mirando Mrsić stressed, among other things, that this year's unemployment rate is declining.
"First time from 2009. we have a growth trend of employment. 23.000 new jobs were opened, and unemployment fell to the lowest branch of 2009., A fall of 18.4 was registered. We have 58.252 of the unemployed less in the last two years, "Mrsić said.
He stressed the youth's falling and youth unemployment as well as 2009. the job got them 26.000. "It all suggests that all that we have been doing in the last four years gives a result. Young people here have secured future and stability, "Mrsić pointed out.
He said that in Croatia every day 50 is opening up new jobs and that this trend will increase in the future. "Also, this year is a record-high level of demand for workers across the Croatian Employment Service," Mrsić said.