The new budget proposal for 2013, according to government assessments, is based on an economic growth of 1.8 percent and an average inflation rate of 3.2 percent.
The main generator of economic growth in 2013 will be, as stated in the government’s presentation of the budget for the next year, public and private investments, while in the upcoming period, the largest contribution to growth will come from the export of goods and services.
However, considering the lack of economic reforms and the extremely unfavorable external environment, readers of liderpress.hr are not overly optimistic.
Namely, as many as 83 percent believe that GDP growth will not occur next year, while the rest think that 2013 will bring growth.
Participants in our last week’s Fight Club, Ante Babić, economic analyst, and Željko Lovrinčević, analyst at the Economic Institute, shared their opinions.
Babić still stands by his predictions of GDP growth next year of two to four percent. Joining the European Union, Babić believes, will add one to two percent to GDP.
On the other hand, Lovrinčević emphasizes that growth will be difficult to achieve since the problem is that personal consumption accounts for over 50 percent of GDP, while investments account for about 25 percent. If consumption falters, Lovrinčević warns, investments will not be able to compensate for it.
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