Croatian government plans 1.6-bn-euro investments
(ZAGREB) - Croatia plans to invest 1.6 billion euros ($2.1 billion) this year in energy projects and infrastructure to boost its ailing economy, Deputy Prime Minister Radimir Cacic said Thursday.
Of that sum more than 1.2 billion euros were planned for projects in public companies, namely the power firm HEP, the national water management firm and the Croatian highways company, Cacic told a cabinet meeting.
The World Bank, the European Bank for Reconstruction and Development and the European Investment Bank are set to provide almost one billion euros for investments in Croatia this year, according to the government.
"In the next year and a half Croatia's success will depend only on how many investments we will launch and in which" sectors and projects, Prime Minister Zoran Milanovic stressed.
Earlier this month the World Bank urged the former Yugoslav republic to stimulate investment if it wanted to achieve economic growth.
The government in Croatia, which is set to join the European Union in 2013, forecast 0.8 percent growth this year.
The World Bank and International Monetary Fund expect the country's economy to fall back into recession however.
Croatia's economy, based mostly on Adriatic tourism, has mostly been in recession since 2009 but it is expected to have managed 0.4 percent growth last year.
Official figures for 2011 output are to be released on Friday.
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