engleski

Human Development Report

Performance of the Croatian economy during the first years after the introduction of the stabilisation programme of the government has been analysed. The economy has shown sings of after war recovery. However, the reforms process has not been completed and the growth policy has proved inadequate in terms of finding mechanisms that could provide stronger impetus to sustainable growth. With respect to structural changes there is evidence of stronger growth of the service sector. The export orientation of the economy is weak and the reasons are in the slow process of structural readjustment, restructuring of the real sector and overvalued domestic currency. Although the overall macroeconomic aggregates are acceptable, serious problems for the further growth are identified in the expansion of consumption of the government as well as personal consumption this at the expense of declining savings and growing current account deficits. The privatisation process has come to a standstill and the problems with the banking sector have not been solved. Reforms of the banking sector are seen as an urgent need along with the structural adjustments that are among the strong recommendations to the government.

economic growth; economic reform; structural adjustments; restructuring; competitiveness; consumption; bank reform; privatisation; public enterprises

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