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Croatia welcomes EC report on its economic imbalances

Source: Xinhua| 2019-02-28 04:16:59|Editor: yan
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ZAGREB, Feb. 27 (Xinhua) -- Croatia's economic imbalances are no longer considered excessive some five years after its EU accession, showed the European Commission (EC) annual assessment of the economic and social situation in the member states.

Croatian Prime Andrej Plenkovic said on Wednesday that the news is very important for stability, further strengthening of the Croatian economy and investors' confidence.

"Croatia is now ranked higher and it is among the EU member states with a stable economy, together with Germany, Ireland, France, Netherlands, Romania, Spain, Portugal, Sweden, and Bulgaria," he said in a government press release.

In the European Semester Winter Package report released on Wednesday, the EC says that the economic recovery in Croatia was largely driven by robust domestic demand. The budget balance has been in surplus since 2017 and public debt has declined notably since its 2014 peak.

It says that Croatia has made some progress in addressing the 2018 country-specific recommendations. The Commission confirmed Croatia's progress in the implementation of structural reforms. The country has reached its national targets under the Europe 2020 strategy in renewables energy efficiency, the employment rate, early school leaving, and poverty and social exclusion.

There has been a rapid fall in the unemployment rate, but still, too few people are working or looking for work, the reports states.

"Today's exit from the excessive macroeconomic imbalance process is a new confirmation that Croatia is heading in the right direction," said the press release.

The EC report provides detailed analysis of member states' economic and social challenges. The monitoring started after the 2008 global financial crisis with the aim to address macroeconomic imbalances in the EU member states that could hurt the EU economy.

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