Development Of Economy Diplomacy Is Necessary

According to the president, Croatia was hit by recession, but it does not mean it is entirely immersed in it.

ZAGREB, CROATIA – Croatia must promptly develop its economy diplomacy, which home companies will inform of the options of engagement on foreign markets and merge them with foreign partners, Croatian President Stjepan Mesic said at Wednesday’s meeting with entrepreneurs, organised by the Croatian Employers` Association.

A more significant exit of Croatian economy subjects abroad should be one of the ways Croatia is to fight the economic crisis and possible recession, according to Mesic.

At the moment, according to his assessment, Croatian companies are not organised while entering foreign markets, which is something that economy advisors in Croatian diplomatic missions should be more active with, Mesic said.

Recession from the world

Mesic assessed that Croatia was hit by recession, but this does not mean it is entirely immersed in it. The extent to which it will be exposed to recession activities depends on the measures it will perform itself.

The greatest problem Croatia is momentarily faced with in the economy area, according to the president, is the slowing down of GDP growth and reduced liquidity on international capital markets, while the danger of illiquidity is realistic in Croatia.

As significant problems, Mesic mentioned foreign debt, pointing out that 11 billion euros will have to be paid this year; higher unemployment and reduced numbers of newly employed persons.

Action plan

The growth of interest rates and difficulties in attaining loans are unfavourable circumstances for the economy, according to the Croatian president.

He believes that there is no simple solution, but he expects an action plan, which the government should present in the next two weeks in the form of anti-recession measures.