The economy of Croatia was hit by Global Financial Crisis in 2009 and currently is in its 6th consecutive year of recession. The country has also been affected by the Eurozone crisis, since Croatia is dependent on the economy of the EU. Approximately half of Croatia’s trade is with the Eurozone, namely with Germany, Italy, Slovenia, Austria, and the Eurozone is the basis of around 75% of foreign direct investment (FDI) that flows into Croatia. Nowadays Croatia’s economy remains to be in need of foreign investment and in demand for its exports. Moreover, Croatia’s economy is exposed to Eurozone crisis through foreign banks in the country. Croatia is still struggling to exit the crisis and achieve economic growth. Furthermore, the neoliberal model of Croatia’s economy may not be leading to stabilization of the economy, but to economic depression. Between 2000 and 2007, the Croatia’s economy saw steady average growth of 4.6%. In 2008 the growth abruptly slowed down to 2.1%, in 2009 the economy contracted by 6.9% and economic growth was stagnant each year ever since. In 2010 decreasing manner was sustained and the economy contracted by 1.3%, in 2011 economy contracted by 0.2%, which may have appeared as a slight revival, but in 2012 the economy contracted by 1.9% due to the passive and stagnant recovery in the global economy. In 2013 the economy contracted by 1.0% and for the 5th consecutive year remained in recession. The European Bank of Reconstruction and Development (EBRD) stated that the growth of Croatia’s economy would not happen before 2014. During 6 years of recession Croatia has already lost 12.3% of its output. Slowly progressing in structural reforms and Croatia’s dependence on the economy of the European Union the growth...
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...abour market, which decreased their chances of re-employment. Social policy regarding poverty is to aim at preventing short-term unemployment from becoming long-term unemployment. Unsurprisingly, deteriorating public finances resulted in annual deficits and a rise in public debt. Croatia’s general government deficit reached 5% of GDP in 2012, and the overall government debt was 55.5% of GDP. In 2013 the deficit increased to 5.5% of GDP, it reflected feeble revenues, fiscal costs linked to EU accession and the debts of government enterprises. The Croatian Government predicts that the general government deficit will remain above 3% of GDP in 2013-2016; the debt-to-GDP ratio will rise to 62% in 2014 and will continue to increase in 2015-2016. Fiscal policy is now the subject to the European Union’s Excessive Deficit Procedure according to Article 126 of the EU Treaty.
The Government of Neoland pursued a multifaceted approach to their financial crisis to help solve the problem. They formed diplomatic channels with United Kingdom, The Netherlands, Japan and Russia. They also receive financial assistance from the International Monetary Fund (IMF) and other countries. The economy is currently facing a “wicked problem” (Savage, Chilingerian & Powell, 2005, p.160) by restricting its major debit, its legislator is giving voluntary pensions savings to increase household spending but the economy is still struggling with the aging population. Like most countries, Neoland is also facing global blindness, its businesses had to learn a hard lesson about benchmarking but due to pride and initial success, they failed to pay attention to its neighboring competitors such as Norway thereby resulting in its failure to develop international fish trade. Neoland’s global blindness is also ...
Inflation increased from 19.91% in 1995 to 26.4% in 1996 before dramatically decreasing to 9.67% in 1997 and hitting a nearly twenty year low of 5.95% in 1999 (See Appendix B). Foreign direct investment inflows continually increased from 1996 to 1999 (See Appendix C). Alternatively, foreign direct investment outflows decreased from $45.3 million in 1996 to $9 million in 1997, but saw a steep increase of 389% to $35M in 1998 and 76% increase to $45.9M in 1999 (See Appendix D). (World
In 1929, there was a huge event that happened in America, which called the great recession. As we know, the great recession causes a lot of negative effects not only on the American economy, but also on the world. Nowadays, although most of the economists do hardly predict recessions in the US, the past record still provides America with a little comfort. A new research indicates that the next giant recession would come soon. According to the online article the America’s vulnerable economy by printed edition, several effects have involved in accounting for this coming recession. Those effects are in terms of housing bubbles, debt bubbles and lower customer purchasing power.
Croatia is a country with a lot of history and in order to make an adequate decision for our company we must first take a quick look at the recent history. Croatia has been in a hotspot for turmoil in the last hundred years. Consumed by wars, civil unrest, and political havoc. Heading into the 1900s Croatia did not even exist as it was officially part of the Austro-Hungarian Empire. After the fall of the empire it join the Kingdom of Serbs, Croats, and Slovenes becoming Yugoslavia. Yugoslavia was ran on a royal dictatorship till it became the Socialist Republic of Yugoslavia in 1945. The socialist party stayed in power till the 1970s when protests broke out demanding more freedom for the people and in 1990 the dream was realized when the country
The recent global financial crisis that affected not only America but also Europe and other parts of the world resulted in massive unemployment. This is due to the high costs of operation that many corporations faced forcing them to cut on labor costs. There is need for European government interventions to avert this social crisis and prevent the occurrence of such a crisis in future. Unemployment has hit the service sector harder than other sectors with the following being the most affected: automotive, construction, tourism, finance and real estate. The global financial crisis has also increased consumer prices thus pushing inflation. According to McCathie, “the increase in July consumer prices to 1.7 per cent pushed inflation in the currency bloc up towards the European Central Bank’s target of keeping inflation at below, but close to 2 per cent. Eurozone consumer prices had stood at 1.4 per cent in June” (McCathie, 2010).
This paper provides an overview of the crisis, outlines the major causes of the crisis, examine alternative solutions to the problem
Current economic reforms in Austria are increasing the attractiveness of foreign investment. There are several advantages to conducting business in Austria that will be particularly relevant in the year 2004. Austria is an international crossroads bordering on eight European countries which include Germany, Italy, Switzerland, Slovenia, Hungary, Slovakia, Czech Republic, and Liechtenstein. Austria’s eastern neighbors, Czech Republic, Slovakia, Slovenia, and Hungary will join the EU in May of 2004. The impact of this is that Austria will become more centrally located.
Eurozone crisis has had huge impacts not only on the economy of the UE but also on the other countries who have economic and financial relations with the members of the union. The reason why we have decided to examine the Eurozone crisis in detail is to have a better understanding of the mechanisms behind this extremely important and complex problem and also to make accurate inferences about the solution alternatives. In our pape...
The Slovak Republic, or Slovakia, is located in Eastern Europe with a population of 5.4 million people and borders the countries of Poland, Austria, the Ukraine, and the Czech Republic (The World Bank). As originally part of the former nation of Czechoslovakia, the Slovak Republic has only recently begun to write its own history (Abizadeh, p. 171).
In order to assess the current state of the economy, the examination of important economic indicators or variables has always played a vital role in the understanding of the complex economic systems we live in. The analysis of these economic variables studied by many, not only has served as a tool to evaluate the current economic performance of a country, but also has allowed experts to envisage and continue the pavement of an economy's road. Currently, some economic variables have had favorable improvements indicating a general good outlook for the economy for the following months, requiring a further individual analysis and comparisons in order to foresee crisis or successes.
Turkey’s economy has weathered some spectacular pratfalls in the past, with a major economic crisis in 2001 almost bringing the country to its knees. What’s different in 2004 from the previous "recoveries" is how committed Turkey is to establishing firm economic footing once and for all. The government is swallowing the International Monetary Fund’s painful economic medicine, making tough choices for fiscal discipline.
Despite its beautiful scenery, its plentiful natural resources, and its extraordinary tradition of hospitality, Albania has always been “the most isolated country in Europe and from World War II until very recently, one of the most isolated countries on earth” (“Real Adventures – Albania” 1). Amongst the booming economies of Europe, Albania is markedly poor, and is trying to make the difficult transition to a more modern open-market economy. In addition, the government is taking steps to encourage economic growth as well as trade. Albania, according to 2003 estimates, “has a GDP of $16.13 billion, with a per capita GDP of $4,500” (“Albania – CIA Factbook” 2). This is an improvement over the Cold War era, in which Albania’s economy was a complete disaster – still, however, Albania’s economy is considerably weak compared to its European neighbors.
Many countries in the world have been suffering a recession in their economies and UK has not been an exception. A recession is a macroeconomic term describing one of the two business cycles that economies go through. The business cycles is characterized by either a boom where there are more business activities carried with a rapid economic growth and points of recession where there is retardation min economic growth. Various aspects and factors contribute to economic growth, which is measured through GDP. This factor may include savings, investments government spending plus other factors within either an increase or a decrease. Reduction in spending may lead to a recession while a n increase in spending may lead to expansion that is a boom in the economy.
Financial Instability The soaring volume of international finance and increased interdependence in recent decades has increased concerns about volatility and threats of a financial crisis. This has led many to investigate and analyze the origins, transmission, effects and policies aimed to impede financial instability. This paper argues that financial liberalization and speculation are the most reflective explanations for instability in financial markets and that financial instability is likely to be transmitted globally with far reaching implications on real sector performance. I conclude the paper with the argument that a global transaction tax would be the most effective policy to curb financial instability and that other proposed policies, such as target zones and the creation of a supranational institution, are either unfeasible or unattainable.
An analysis of the Albanian economy in the past, current, and future demonstrates how an economic structure fluctuates with the type of government present at the time. Albania, a newly found member of the European Union, is a midst its battle to stabilize its vigorous economy that has had trouble since before the 1940’s. An explanation of this instability can be found looking through Albania’s history, government structure, currency and exchange rates, imports and exports including natural wealth, national education, unemployment rates, and the country’s overall integration on a global scale.