- Published: 27.02.2015.
PM Milanovic: GDP figures show my government is on right track
Croatia's Gross Domestic Product growth of 0.3% in Q4 2014 on the year shows that the government is on the right track and that it is doing its job responsibly, Prime Minister Zoran Milanovic said on Friday after the national statistical office released figures on +0.3% growth in the Croatian economy in the last quarter of 2014 year on year.
"I am pleased to see it, given that it is difficult to build on rotten foundations. Quarters and quarters of stagnation are behind us. There have been some downs, while before that a sharp downturn was registered in 2008, 2009 and 2010," Milanovic said alluding to the performance of the Croatian Democratic Union (HDZ)-led government before his Social Democrat government came in power.
"What is going on now is the result of the work of this government," Milanovic said in the eastern town of Zupanja where he was visiting the Same Deutz Fahr factory of agricultural equipment and machinery.
The factory is currently employing 11 young workers under the Labour Ministry's youth employment scheme.
Croatia's economy grew 0.3% in the last quarter of 2014 compared with the same period of 2013, which was the first time it had increased after declining for 12 quarters in a row, the national statistical office (DZS) said on Friday publishing a preliminary estimate of GDP in Q4 2014. The economy thus emerged from recession after declining for 12 consecutive quarters, and the growth is slightly higher than expected.
Asked by reporters whether those figures indicated that the country was going out of the recession, Milanovic said that the answer to this question would be known after the first two quarters in 2015, adding that macroeconomic figures in the first two months of 2015 were favourable. "What is good is growing personal consumption," he said, warning against heavy borrowing.
He announced further reforms but without tough cuts and reiterated that Croatia was not like Greece. We will be going slowly with reforms, he explained.
He said that Croatia's deficit was still higher than desired, however, it was moving down towards the ratio of 3% of GDP.
Asked by the press about the timing of the next parliamentary election, the premier said that "regular elections are due in February 2016".
"When they will be held is to be decided by the parliamentary majority," he added.
(Hina)