There are no signs that indicate economic growth in 2013 will be positive, according to forecasts of Zagreb's Economics Institute, which was presented by its director Sandra Svaljek at the XI meeting of the businesspersons of the Zagreb County, Croatian independent website Index.hr reported.

"We have said this many times and often it did not come through. However, this year I hope we are close to the truth when we say it, all the more so since the economists and the proponents of economic policy in the EU are saying the same thing. If Europe says that it will see economic growth in the second half of the year, some of it is going to reflect on Croatia," Svaljek emphasized.

"A mildly positive growth rate should follow in 2014, but there will be no rates of three or four per cent to which we became accustomed some 10 years ago," Svaljek said.

"Three or four months ago, our projections were much more optimistic than they are today. Why is that? Simply because we are keeping up with the economic trends on a monthly basis, and those trends are so unfavourable that we have to revise our projections to worse," Svaljek said, adding that indications of positive trends could bring investments, which has not happened yet.

"The recovery we are expecting this year is again based primarily on investments"

"In 2013 we are only expecting a mild recovery, and we also expect positive trends as far as exports are concerned. The recovery we are expecting this year is again based primarily on investments. I hope that some of it will be realized this year and the next."

The fact that Croatia is surrounded by Italy, Hungary, and Slovenia, countries that have been recovering poorly and countries with which we are economically connected to quite an extent, is not in Croatia's favour.

Svaljek also established that the government had not worked enough in the sphere of economic policy because there have been no effects. "The tax framework was changed too much, which creates uncertainty for entrepreneurs, value added tax was increased, and, overall, the tax policy has not been stimulating," Svaljek said, going on to establish that the forthcoming accession to the EU was positive. "Accession is positive not only because there will be more opportunity of receiving funds from the EU but also because membership will additionally improve our institutions and our legislation, as well as implementation of the laws," Svaljek concluded.

Source: bne