Analyst pleasantly surprised by budget deficit level

The chief economist at Societe Generale Splitska Banka, Zdeslav Santic, on Thursday welcomed the latest statistics on Croatia's budget deficit and public debt as "a pleasant surprise".

Croatia's consolidated general government budget deficit in 2015 was HRK 10.7 billion or 3.2% of Gross Domestic Product, while consolidated general government debt reached HRK 289.7 billion or 86.7% of GDP, according to figures from a report on excessive budget deficit and general government debt in Croatia, presented at the National Bureau of Statistics (DZS) in Zagreb on Thursday.

Santic told Hina that "most definitely the level of the budget deficit at 3.2% of GDP is a most pleasant surprise". He recalled that in 2014 it stood at over 5%.

The analyst also pointed out higher-than expected economic growth of 1.6% in 2015.

On the other hand, Santic warned about headwind factors such as a 0.5% decline in consumer prices affecting the budget revenues in 2015.

In 2015, Croatia registered deflation for the second year in a row, he recalled.

Last update: Thu, 21/04/2016 - 13:25
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