Place Credit Reports Croatia Order
Economy Overview:
Before the dissolution of Yugoslavia, the Republic of Croatia, after
Slovenia, was the most prosperous and industrialized area with a per
capita output perhaps one-third above the Yugoslav average. The economy
emerged from a mild recession in 2000 with tourism, banking, and public
investments leading the way. Unemployment remains high, at about 18%,
with structural factors slowing its decline. While macroeconomic
stabilization has largely been achieved, structural reforms lag because
of deep resistance on the part of the public and lack of strong support
from politicians. Growth, while impressive at about 3% to 4% for the
last several years, has been stimulated, in part, through high fiscal
deficits and rapid credit growth. The EU accession process should
accelerate fiscal and structural reform.
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