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Coronavirus:Croatia, direct costs 1.46 billion due to crisis

GDP 9.4% decline in 2020, lower than initial estimates

04 September, 13:13
(ANSA) - ZAGREB, 04 SET - In Croatia, the Coronavirus crisis has generated direct costs to the public coffers for 1.46 billion euros, more than half of which spent on support and subsidies for maintaining jobs, Croatian Finance Minister Zdravko Maric announced. Aid measures for companies, with transfers of around 800 euros gross for each worker, have generated an expense of 900 million euros. About 560 million, the remainder concerns the extraordinary costs incurred by the health system and aid to local authorities, necessary for their regular operation in conditions in which they cannot count on the ordinary tax revenues. In addition to direct expenses, the pandemic's cost must also be added to the losses of the tax authorities, due to the decline in economic activities, estimated at another 1.3 bn euros. Therefore, the Croatian state's overall cost, for aid and losses, is now around 2.8 bn euros, out of an annual budget of just under 20 bn. Maric also announced that his ministry would shortly publish the revised Economic and Financial Document (EED), with the forecast of a 9.4% drop in the Croatian GDP in 2020, lower than previous estimates, around 10,5%. The smaller contraction is mostly due to the government's decision to keep the country almost fully open during the summer to help tourism. (ANSA).

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