Percorso:ANSA > Nuova Europa > News > Croatian deficit exceeds expectations, GDP drop continues

Croatian deficit exceeds expectations, GDP drop continues

Government introduces corrective measures to stimulate spending

30 October, 15:56

(ANSA) - ZAGREB - Instead of becoming the year of recovery as hoped by the government, 2014 will mark Croatia's sixt consecutive year of economic recession, with GDP growth projections corrected by mere 0,1% to a more realistic -0,7%. In this light, the Zagreb government has approved a set of corrective measures aiming to bring the public deficit to 5% of GDP, foreseeing a Eur 2 billion deficit at the end of 2014.

To encourage more citizen spending and give a "breath of fresh air" to the middle class, the government will rise the non-taxable portion of income as of February - a measure which should bring 10 to 100 euro increase in paychecks to over one million Croatian workers. The loss of tax return is to be compensated by the introduction of a 12% tax on savings interest. Currently, Croatia is the only EU country without a tax on savings and with 12% will however remain one of the lowest in Europe. (ANSA).

© Copyright ANSA - All rights reserved