Finance minister: In times of inflation it’s key to maintain economic growth

NEWS 24.05.2022 16:18
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Source: N1

The most important thing in the current situation of big inflationary pressures is to maintain economic growth, Croatian Finance Minister Zdravko Maric said in Brussels on Tuesday.

He was attending a meeting of EU finance ministers which discussed, among other things, the economic situation and prospects in the context of high inflation and the Russian aggression on Ukraine.

Inflation remains a priority, Marić said after the meeting, “but despite the inflationary pressures and attempts to mitigate its effects and overcome this crisis, we must not, in any case, neglect economic growth.”

Inflation is expected to accelerate in the next few months in all EU member states, followed by a slowing down, but given the very high uncertainty, it is very difficult to forecast developments, Marić said.

Croatia’s set of measures to mitigate the effects of inflation is among the bigger ones in the EU in relation to GDP, he added. “Croatia is in the upper half because the EU average is 0.6% of GDP and the Croatian package is over 6% of GDP.”

Croatia has cut VAT on energy and some food and it remains to be seen if the goal, lower prices, has been achieved, Marić said.

The fact that Croatia is no longer experiencing macroeconomic imbalances “is very good wind at our sails” ahead of the convergence report in which the European Commission is expected to make its final assessment of Croatia’s readiness to adopt the euro, he added.

The report will be debated by EU finance ministers and at an EU summit in June, while the adoption of legislative acts on Croatia’s accession to the eurozone is expected in July.