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Moody’s analyzes west Balkan

Moody’s analyzes west Balkan

Presscut - Croatian Newsmonitor/Provider: Media Net d.o.o.
December 4, 2007  

Moody’s analysts recently published a short analysis of west Balkan countries, Croatia, Serbia and Bosnia and Herzegovina, emphasizing the big progress the region has accomplished over the past few years, especially with regards to economic growth.
At the same time, the analysis warns about the problem of high and ever growing deficits on the balance of payment current account, high foreign debt, and high unemployment rate in Serbia and B-H. Moody’s also indicates the issue of grey economy, which is not included in official statistics. With the breakthroughs in this area, statistics would significantly improve, but this would also attract foreign investors, raise tax revenue and facilitate the monetary policy.
While the macroeconomic indicators show progress, a large part of structural reforms are still to be executed. Moody’s underlines corruption as one of the major problems. While Croatia has gone the furthest in anti-corruption measures, it is still a big problem in the region.
(www.poslovni.hr)

 

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