engleski

The Possibilities of Economic Recovery: The Case of Croatia

The results of Croatian economic policy have been noticed in the reduction of the economic activity, the significant growth of the deficit and indebtedness, the development of pessimistic expectations and the lack of investment. The dynamics of the movements and changes in personal consumption structure in the recession are conditioned by the reduction of disposable income, unfavourable labour market trends and pessimistic expectations of the population sector. At the same time government spending has increased, whereas its characteristic is the existence of the significant level of the budget deficit. It is mostly financed by the growth of domestic and foreign government debt. Therefore the expenditures for interest rate have increased at most in total government expenditure structure. Under circumstances of the reduction in personal consumption and the need to stop the growth of government spending, the perspectives of the economic growth are recognized in the investment and export growth. The possibilities of Croatian economic recovery lie in the efficient governance of the public sector and strengthening of investment in human capital.

economic recovery; Croatia

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