Croatia- accumulated high debt levels!Private and public sectors
“You have become what we call ‘the country of an unfinished reforms agenda’, which is not a term that the World Bank likes to use, but, unfortunately, this is the case
DEEP POCKETS OF POVERTY
We have conducted detailed analyses that point to the existence of deep pockets of poverty. The society is becoming marginalized and inequalities are increasing.
This is where the government has a role to play – to care for the poorest and provide for those who cannot be active members of society.
You need to change the generators of growth, which can be done by reducing the public sector and having a greater presence of the private sector. A private sector which should be more productive, more dynamic, with more added value. It is fine to have tourism revenues equal to 20 percent of GDP, but the question is whether you want tourism to be the generator of growth or whether this should be a dynamic and strong private sector able to compete at the European level?”
– Elisabetta Capannelli, the new World Bank Country Manager for Croatia and Slovenia, in her first interview for the Croatian media, talks about growth, the introduction of the euro, etc…
Absolute poverty rate, measured at the US$5.5 at PPP 2011, will decline to 5.2% in 2019.
Remaining high levels of private and public sector indebtedness, the ongoing pre-bankruptcy proceeding of Croatia’s largest firm Agrokor, and the possibility of a further rise in the risk premium for emerging markets are
all mounting concerns as the country faces the large refinancing of its public debt.
“…rizike predstavljaju i još uvijek visoka razina zaduženosti privatnog sektora…”- navodi se u Izvješću Svjetske banke, October, 2017.