Labour and Pension System, Family and Social Policy Minister Josip Aladrović (Photo: Davor Puklavec/PIXSELL) Labour and Pension System, Family and Social Policy Minister Josip Aladrović (Photo: Davor Puklavec/PIXSELL)

At today’s cabinet session government decided to extend economic measures aimed at preserving jobs and supporting economic activity. Labour and Pension System, Family and Social Policy Minister Josip Aladrović addressed reports after the cabinet session: "Given the uncertainty of the situation we find ourselves in, we have decided that the measures that are currently in place, such as the 4000 Kuna per worker in those industries hardest hit by the virus, will be extended for January and February. This is a signal to employers that Government will continue to support them and wants to preserve every job and that we will do everything necessary to do so."

Meanwhile, the Croatian National Bank has revised its forecast for this year from an 8% decline in GDP to 8.9%. Governor Boris Vujčić still expects 5% growth next year, but added that the rate of recovery will depend on the length of the restrictive measures: "In our projections, we foresee that some part of the epidemiological measures will be in place in January. However, extending those measures beyond the first quarter would obviously result in a stronger drop in GDP. And this is where our pessimistic scenario comes into play, if the measures are extended into the first half of the year we won't see recovery to 2019 levels until 2023."

Source: HRT