According to the economic and fiscal policy guidelines and accompanying projections presented at Thursday’s cabinet session Croatia will see GDP growth slow slightly over the next two years, as well as a continued drop in the budgetary deficit and public debt.
At Thursday's cabinet session Deputy Prime Minister and Finance Minister Zdravko Marić presented the Economic and Fiscal Policy Guidelines for the 2020 to 2022 period. Minister Marić noted that budget revenues in 2020 are planned at 141.6 billion Kuna, while expenditures would amount to 144.3 billion. He added that government is projecting a real growth of the Gross Domestic Product of 2.8 percent for this year. The minister noted that over the next three years GDP growth will slow slightly to 2.5 percent in 2020 and 2.4 percent in 2021 and 2022.
According to Marić, the main driver of growth will continue to be consumer spending and domestic demand, while, in spite of continued growth in exports, the contribution of net exports is expected to enter a mildly negative trend.
Government is projecting a budgetary deficit of 0.2 percent in 2020 and a surplus of 0.2 percent in 2021 and 0.6 percent in 2022. The minister says inflation will hold steady at between 1 and 1.5 percent for the entire projected period, while this year it should be less than 1 percent.
In terms of the public debt as a percentage of GDP, Marić said this should continue to decline by roughly three percentage points each year, falling to 61.9 percent by 2022. Minister Marić said that the rate of the decline in the public debt decline is four times faster than that required by the Stability and Growth Pact, which is one of the key criteria for joining the Eurozone.
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