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
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