Macroeconomic Forecast Croatia

May 2007 | Macroeconomic Forecasts

BMI View: Gross external debt rose to US$38.2bn in December, equivalent to a massive 90% of GDP. Some 35% of this is owed by banks, amid domestic credit growth of 22.4% in January, up from 18.5% in January 2006 and 12.3% in January 2005. Large external debt is the largest single macro problem facing the country, although we believe that the CNB''s progressive increases in marginal reserve requirements will help stem banks'' foreign borrowing somewhat going forward.

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