Croatia Faces Stagnation

Politics ♦ Published: January 5, 2013; 00:11 ♦ (Vindobona)

Last year, Croatia´s economy shrank substantially. In 2013, the country will recover, economists say.

Croatia Faces Stagnation / Picture: © Vindobona.org

After a series of downgrades by the rating agencies, Croatia´s government does not exclude financial aids from IMF anymore. In December, S&P has downgraded Croatia´s sovereign debt rating. Now, Croatian sovereign bonds only have “junk status”. As the debt service costs have grown drastically, the government fears that the austerity measures are not sufficient anymore.…