Influential Swiss paper Neue Zürcher Zeitung reports on investment halt in Croatia due to elections
Neue Zürcher Zeitung published a report on December 7, 2015, focusing on the current investment climate in Croatia which currently seems to be at a stand-still due to investors waiting for the new government to be formed. The paper also reminds the readers that trading on the Zagreb Stock Exchange has gone from 20 million euro per day to about 1 to 1,5 million. They add that since the 2009 recession has „destroyed 13% of the economic effect“ and increased the unemployment to 15,8%.
„Youngest member of the EU is suffering from structural weaknesses. Economy, which mostly relies on state sectors or sectors closely related to the State, lacks competitiveness. The country is also in dire need of reforms in both health and pension systems. Furthermore, Croatia is in danger of its debt spiralling out of control – in six years debt has risen from 39% to 85 of its GDP, while the deficit of the national budget has risen to around 5%“ states Neue Zürcher Zeitung.
It is obvious investors are waiting for the new government to be formed and they are watching current political developments very closely: „Should the talks between the parties fall through, it is obvious we are heading back to the polls, and the instability and insecurity investors don’t like much, would be prolonged again“ Neue Zürcher Zeitung warned.
