FinMin glad about increasing exports and consumption growth

Finance Minister Boris Lalovac on Thursday commented on the latest Croatian National Bank (HNB) estimate of a possible slight economic decline in the first quarter of 2015, highlighting the latest figures showing increased exports in the first two months of the year and further personal consumption growth.

The HNB said on Wednesday that mixed signals were pointing to the stagnation of economic activity at the start of the year, adding that improved financing conditions and low oil prices were expected to have a favourable effect on economic activity in the remainder of the year, despite a possibility of a marginal economic decline in the first quarter of the year.

"These are initial indicators from the HNB, we'll see. Exports in the first two months were positive, we'll see after detailed figures are released. What makes me glad is personal consumption as a major growth generator, which is beginning to stabilise gradually. ... We'll wait for a few more days to see more specific figures," Lalovac told the press after a Cabinet meeting.

The National Bureau of Statistics announced on Thursday that Croatian exports in the first two months of the year were 4.1% higher than at the same time last year, reaching HRK 12.12 billion, while imports had decreased by 2.7% to HRK 18.8 billion.

Asked to comment on the reform package which the government needs to send to Brussels, Lalovac said that he and Deputy Prime Minister Branko Grcic had been instructed to identify areas where between 500 million and one billion kuna could be saved.

"I'm now going back to the ministry to comb through the budget. ... I think we will propose to Brussels a package of up to 2 billion kuna in cuts, which will be achieved not just by merging various agencies but also through cuts in the central government budget," Lalovac said.

Last week the government sent to Brussels an initial set of measures under the Reform Plan, and Lalovac and Grcic are meeting with EU Commissioner for Economic and Financial Affairs Pierre Moscovici on Sunday and Monday.

(EUR 1 = HRK 7.6)

(Hina) vm

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