- Published: 08.01.2015.
Gov't has set foundations for economic recovery and growth, say ministers
In the first three years in office the government has set the foundations for economic recovery and growth, Deputy Prime Minister and Minister for Regional Development and European Union Funds Branko Grcic said at a press conference on Thursday held by him and four other ministers responsible for the economy.
Grcic claims that the government has achieved its three main objectives: to put the state in order, control public finances and set the foundations for recovery and growth, which is a significant achievement and far better than that by the previous Croatian Democratic Union (HDZ) led government.
He added that the government had managed to continually protect the most vulnerable members of society, meeting all commitments to that section of the population.
In spite of all of this, he added, the government has not managed to raise Gross Domestic Product (GDP) and the greatest reason for this, in his opinion, is the grave crisis in the construction industry and reduction of public consumption due to fiscal consolidation which has led to a downfall in investments.
He believes that GDP in 2014 will be in line with forecasts following the latest budget revision and expects further improvement in 2015.
Grcic estimates that most economic indicators for 2014 show a trend toward positive values and expects this trend to continue in 2015.
He noted that the government had redirected the domestic economy from being one based on loans towards an economy based on industry and exports.
"That's one of this government's greatest achievements," he claimed citing official statistics indicating a growth in industrial production, foreign trade, tourism and retail trade as well as a fall in the number of the unemployed and an increase in the consumer perception index.
Grcic added that the press conference had not been organised to show the government's support for presidential candidate Ivo Josipovic but that it was time the government responded to the constant criticism by the opposition and its accusations that the government was incompetent.
Enterprise Minister Gordan Maras was a little more direct and estimated that the "unqualified, incompetent and partially corrupt HDZ government had left behind a 'black hole' which had swallowed up over 50,000 SMEs and companies," which the incumbent government, in his opinion, has corrected and over the past three years around 2,000 more companies had been opened than shut down.
Finance Minister Boris Lalovac explained that the government in power had saved 4 billion kuna in salaries, material expenditure and subsidies compared to 2011. Insolvency has been reduced and pre-bankruptcy settlements have saved several companies and numerous jobs.
Economy Minister Ivan Vrdoljak considers the realisation of energy projects to be this government's best achievement as Croatia is becoming an energy hub in the region. He added that the successful restructure of the ship building industry has resulted in Croatia climbing the Doing Business ranking.
Tourism Minister Darko Lorencin underscored a five percent growth in tourist arrivals and an increase of 2.5 percent in tourism revenue in the first nine months of 2014.
(Hina) sp