Ex-minister: Downward revision due to poor start of new government

Opposition Social Democratic Party (SDP) deputy leader Branko Grcic said on Tuesday that the European Commission's downward revision of its growth projection for Croatia for this year to 1.8% was the result of a poor start of the new government.

Grcic, who had served in the previous government as Minister of Regional Development and EU Funds, said that the previous government had done a good job in 2015, achieving five consecutive quarterly growth rates, reducing the budget deficit to 3.2% of GDP and nearly halting the growth of the share of public debt in GDP.

"A slightly lower growth rate in the last quarter, of 1.9%, or 2% seasonally adjusted, is still above the annual average, which was 1.6% and would certainly have been higher had that time not been marked by elections and a long process of government formation. As an excuse for the downward revision, it is unconvincing. I think it is more due to a bad start of the new government," Grcic told Hina.

He said that the European Commission, too, can see that the government is unstable. "The system is not functioning, and both the ruling coalition and we in the opposition, as well as citizens and the European Commission, are aware of that. Everyone is aware that this will affect the economy in the period ahead," Grcic said.

Last update: Sat, 09/07/2016 - 16:13


Grcic comments on EC's growth forecast


Thursday, February 4, 2016 - 14:54

More from Croatia

HVIDRA war veteran association against meeting Serbia veterans

The leader of the association of Homeland Defence War veterans that goes by the name HVIDRA and a Croatian...

Number of female MPs in 9th Sabor rises to 30

The number of female deputies to the ninth Croatian parliament rose from 19 on the day of the new legislature's...

HZ Infrastruktura granted EUR 241 mn for railway line leading to Hungarian border

ZAGREB, Oct 21 (Hina) - The Croatian railways infrastructure company HZ Infrastruktura and the European Commission...

Petrov: Croatia won't impose solutions on Bosnia

Croatian Parliament Speaker and Bridge party leader Bozo Petrov said in an interview with the Bosnia and Herzegovina...

2015 general government deficit revised upward to 3.3% of GDP

Croatia's consolidated general government deficit in 2015 was HRK 11.03 billion, or 3.3% of GDP, the National Bureau...