IMF in Croatia: Economic Outlook Weak, Raise Retirement Age to 67

In addition to the adverse external conditions and high unemployment, GDP will drop by a further 1.5 percent in 2012, with modest growth of 0.75 percent in 2013 boosted by the expected public investment and a small improvement in external demand provided a boost in 2013 culminating in modest growth of 0.75 percent. That is the latest assessment of the International Monetary Fund (IMF)in Croatia.

The IMF suggests Croatia raises the retirement age to 67 years, has more flexibility in the labour market, increases the zero VAT rate to 10 percent, rationalizes excessively employment and wages in the public sector, and revises the current unsustainable pension and health systems, reports website Monitor.hr.