Public Sector Economics, Vol. 41 No. 1, 2017.
Izlaganje sa skupa
https://doi.org/10.3326/pse.41.1.5
Public finance in the Republic of Croatia: current state and outlook
Zdravko Maric
; Ministry of Finance of the Republic of Croatia, Zagreb, Croatia
Sažetak
At the moment Croatia is facing a number of economic challenges as well as numerous opportunities. The challenges are for the most part related to the consequences of the economic crisis that began six years ago and the need to reduce budgetary and macroeconomic imbalances. The importance of this line of action in economic policy is further reflected in European Commission findings which point to the vulnerabilities of the Croatian economy and the consequential assessment of the possibility to introduce corrective measures that could ultimately result in the freezing of EU funds. Moreover, fiscal vulnerabilities have resulted in excessive deficit procedure being launched in January 2014, whereby Croatia was obliged, in accordance with Council recommendations, to reduce the deficit to 2.7% of GDP by the end of 2016 and ensure sustainable trajectory of public debt.
On the other hand, a number of indicators point to favourable economic trends, notably high-frequency macroeconomic indicators including industrial production, the number of tourists’ overnight stays, real turnover in retail trade and construction works show an upward trend, while exports and employment rates are increasing. The forecasted GDP growth rate for 2016 will thus significantly exceed initial expectations. Over the medium term the positive trends are expected to continue, with a gradual increase in economic activity. In 2017 and 2018 GDP is projected to increase by 3.2%, this increase rising to 3.3% in 2019. It should be noted that projected general government deficit in 2016 will be significantly lower than initially forecasted. Moreover, the debt-to-GDP ratio is declining for the first time since 2007 and is projected to reach 83.9% at the end of 2016, which is almost 3 pp below the ratio registered at the end of 2015.
Ključne riječi
Hrčak ID:
178756
URI
Datum izdavanja:
15.3.2017.
Posjeta: 1.181 *