The first half of this year shows a good trend – the deficit in trade with foreign countries was 24.9 percent lower than in the same period last year. However, since this is not the result of a significantly increased export, but rather a significantly reduced import, and consequently reduced tax revenues, the state budget is in trouble.
Hungry years have arrived in Croatia due to the double deficit, a simultaneous shortfall in the current account of the balance of payments (which contains data on all economic transactions with foreign countries, imports and exports, state transactions, and capital movements) and in the state treasury. Most old and new EU member states believe it would be wiser to increase the budget deficit and stimulate demand, thus production and export, but Croatia cannot do that.
