The Governor of the Croatian National Bank, Boris Vujčić, stated on Sunday that a GDP growth of two percent should not be considered satisfactory as it is relatively low compared to other Eastern European countries, but it is positive because this growth is based on healthy foundations. He emphasized that the HNB is consistent in protecting the exchange rate of the kuna.
GDP is growing on healthy foundations because exports are increasing, rather than just consumption as before. It is also good that, apart from public debt, all other debts are decreasing, said the HNB governor while commenting on the improved forecasts for Croatian GDP growth in the central news program of HTV. He expressed optimism but also emphasized that reforms are necessary across all sectors – from public administration, judiciary, healthcare, to education. He highlighted that the deficit, according to HNB estimates, will fall below 3 percent.
However, Vujčić stated that further efforts are needed to increase GDP to improve the credit rating, which is currently two notches below the investment-grade rating.
Speaking about the strengthening of the kuna before the tourist season, he said that this is a result of a trade surplus with foreign countries, as we export more than we import. The pressure for the appreciation of the kuna, on the other hand, will increase with the withdrawal of funds from the EU, but the HNB will remain consistent in protecting the exchange rate, concluded Governor Vujčić.
