September 20 (SeeNews) - Croatia's finance ministry expects the country's economy to grow by around 3% annually in the next five years, due to the benefits of the European Union (EU) membership, finance minister Martina Dalic said.
"The membership and the access to the European market that goes with it provide an excellent opportunity to expand: this year, during the first six months, we have seen double-digit growth in exports. Investments are also picking up," Dalic said in an interview posted on the website of the International Monetary Fund (IMF) on Tuesday.
Croatia targets an economy which is diversified and this is exactly why the focus of the government is on the improvement of the investment climate, with the recent reduction of administrative barriers and a tax reform to lower the tax burden, Dalic said.
At the heart of the government’s policies is the goal to create a business climate which makes Croatia an attractive and dynamic investment destination, and not just a tourist one.
Tourism is important for Croatia, but its direct contribution to GDP is not so big: only 3% to 4%. Dalic said. The indirect effect of tourism on different industries, of course, is extremely important.
Manufacturing contributes a 17-18% of GDP in Croatia, and other types of services, including transportation and financial services, are also strong contributors, she added.
In April, the IMF increased its forecast for Croatia's economic growth in 2017 to 2.9% from an earlier predicted 2.1%. The growth of Croatia's gross domestic product (GDP) is expected to slow down to 2.6% next year, the IMF said in the April edition of its World Economic Outlook report.
Croatia's GDP growth accelerated to a real 2.9% in 2016, from 1.6% in 2015