| Description |
1 online resource (74 pages) : color illustrations |
| Series |
IMF country report ; no. 14/124 |
|
IMF country report ; no. 14/124.
|
| Contents |
Cover; CONTENTS; BACKGROUND; A. The Setting; B. Recent Economic and Financial Developments; OUTLOOK AND RISKS; POLICY DISCUSSIONS; A. Reviving Growth; B. Regaining Control Over Fiscal Policy; C. Maintaining Monetary and Financial Stability; STAFF APPRAISAL; BOXES; 1. Croatia Risk Assessment Matrix; 2. External Financing; 3. Real Exchange Rate Assessment; 4. Parameters of the Revised 2014 Budget; 5. Options for Fiscal Adjustment; TABLES; 1. Selected Economic Indicators, 2007-15; 2. Balance of Payments, 2008-19; 3. Medium-Term Baseline Scenario, 2008-19 |
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4. Consolidated General Government Finances, 2009-195. Monetary Accounts, 2008-13; 6. External Financing Requirement, 2008-15; 7. Financial Soundness Indicators, 2008-13; FIGURES; 1. Croatia Compared to Peers; 2. Balance of Payments, 2007-13; 3. Financial Market Developments, 2008-13; 4. Short-term Indicators; 5. Competitiveness Indicators, 2000-13; 6. Business Environment, 2013; 7. Fiscal Developments, 2010-19; 8. Monetary and Banking Sector Updates, 2008-13; 9. Vulnerability Indicators, 2007-13; 10. Vulnerability Indicators vs Regional Peers, 2012-13; APPENDICES |
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I. Authorities' Response to Past IMF Policy RecommendationsII. EU Funds; III. Explaining the Decline in Croatia's Exports; IV. Labor Market Reforms Prior to 2013; V. The Corporate Pre-Bankruptcy Settlement Procedure (PBSP); VI. Conversion of Government Balances from Cash to ESA 95; VII. Non-Performing Loans; ANNEXES; I. External Debt Sustainability Analysis; II. Public Debt Sustainability Analysis; CONTENTS; FUND RELATIONS; STATISTICAL ISSUES; WORLD BANK RELATIONS |
| Summary |
"Croatia remains stuck in an unusually drawn out recession, with real GDP contracting for the 5th consecutive year in 2013. Domestic demand is depressed as corporations and households struggle with excessive debts accumulated in the 2000s. Exports and FDI are also weak, reflecting poor trading partner growth and structural weaknesses. With traditional fiscal and monetary policy responses out of reach (see below), private sector debt restructuring and measures to attract FDI provide the best prospect to revive growth in the short to medium term. Further, labor market reforms are critical to strengthen the economy' capacity to adapt to external conditions. Restoring Fiscal Sustainability. High fiscal deficits, rapidly increasing public debt and elevated risk spreads demand sustained fiscal consolidation. Adjustment should be stretched over several years, with an emphasis on low multiplier measures - including on the revenue side - during the early phase of consolidation. Safeguarding Monetary and Financial Stability. Monetary policy aims at stability of the kuna-euro exchange, to prevent that a depreciation trigger a contractionary revaluation of FX-indexed debts. The central bank has defended the arrangement with limited but effective instruments, notably FX liquidity and required reserves regulation. The banking system has remained stable in spite of the protracted recession, owing in large measure to the central bank's aggressive capitalization policy. Previous Staff Advice. Since the 2012 Article IV consultation, the authorities have made progress with reforms to strengthen the legal and regulatory framework for investments and to enhance the labor market's adaptive capacity. Fiscal policy slipped in 2013, but a renewed effort at consolidation has been made recently with a revised 2014 budget. The 2014 effort remains to be integrated into a coherent, multi-year strategy"--Abstract |
| Notes |
"May 2014." |
|
"April 23, 2014"--Page 2 of pdf |
|
Online resource; title from pdf title page (IMF Web site, viewed May 19, 2014) |
| Subject |
International Monetary Fund -- Croatia
|
| SUBJECT |
International Monetary Fund fast |
| Subject |
Economic development -- Croatia
|
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Finance -- Croatia
|
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Economic indicators -- Croatia
|
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Economic development
|
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Economic indicators
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Economic policy
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Finance
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| SUBJECT |
Croatia -- Economic policy
|
| Subject |
Croatia
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| Form |
Electronic book
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| Author |
International Monetary Fund.
|
| ISBN |
9781484396513 |
|
1484396510 |
|
9781484397183 |
|
1484397185 |
|
