Croatia still in crisis, says ex-central bank governor

NEWS 16.04.2019 17:34
Source: Marko Lukunic/PIXSELL

Former central bank governor Zeljko Rohatinski says in his book "Crisis in Croatia" that the country is still in a crisis and that cooperation between companies, banks and the state as well as greater engagement on the state's part are necessary to overcome it.

“In the book I analyse the development of the economic situation in Croatia from 2008 to 2018. There are indicators according to which we are coming out of the crisis. However, the accumulated problems are still of such intensity that we are actually still in crisis. Also, options are being considered as to what and who should be more active for the solution to be better and quicker. In my opinion, it’s necessary to establish synergy between three important subjects: companies, banks and the state. This can’t be unorganised and the state has a big role in it all,” Rohatinski said at the book’s launch on Tuesday.

In 2018, Croatia returned to the economic level of 2008, which was neither quick nor cheap, he said, estimating that EUR 26 billion was lost in GDP in the said period as well as 180,000 jobs. The predicted GDP growth of 2.5 or 3% is not enough as it will keep Croatia at the bottom of the EU for a long time, he added.

Zagreb Faculty of Economics professor Marijana Ivanov, one of the book’s consulting editors, said one of its messages was that Croatia must be the one governing change. It transpires from the book that, although we have officially come out of the crisis, we are still standing still, she added.

Drago Jakovcevic, another Zagreb Faculty of Economics professor, said Rohatinski analysed the crisis also through the people most affected by it, first and foremost those who lost their jobs.