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Croatia to expect slight slowdown but not recession: bank chief

Source: Xinhua| 2019-11-07 01:23:18|Editor: yan
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ZAGREB, Nov. 6 (Xinhua) -- Croatia may experience a slight slowdown in gross domestic product (GDP) growth rather than a recession over the next two years, said Boris Vujicic, governor of the Croatian National Bank, at the annual meeting of Croatian economists on economic policy held on Wednesday in the coastal city of Opatija.

"The current projection is that GDP in Croatia could grow by about 2.5 percent," the governor said.

Vujicic singled out the trade war as well as the sanctions and tariffs which the U.S. could impose on Europe as the main risks that could negatively affect growth in Europe and Croatia.

The participating economists were also addressed by President Kolinda Grabar-Kitarovic, who said that a five percent economic growth is desired for the country so that citizens could feel an increase in living standards.

"We are growing, but unevenly, being hypersensitive to external circumstances, and this growth that we still have will slow down because we have not yet established the basis for faster strong growth in the long run," the president said.

Tomislav Coric, minister of the environment and energy who addressed the gathering on behalf of the Croatian government, said that much had been done in Croatia in the past few years, but that the structure of the economy needed to be further changed.

"In July, there were 1.5 million employees and this is the highest figure in the last 28 years," said Coric, noting that in the last three years the average salary of employees has increased by five percent.

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