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 ...
Yugoslavia was fabricated in the year of 1918. Located near the country of Italy, the territory is now broken up into six independent countries. The nation started to fall apart in the late 1980 's, following the World War II victory for the Allies. While some countries can benefit from diversity, there was just too much for Yugoslavia to survive. Yugoslavia as a nation failed because of too much autonomy between the six nations that came to be, too many different cultures in one nation, and simply a subjugation of overflowing diversity.
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
This paper is analysis of The Croatian War of Independence, It was fought between Croatian forces devoted to Croatian the government between 1990-1995, the war started when Croatia declared their independence from the Socialist Federal Republic of Yugoslavia. The Serbians had control over the Yugoslavian People’s Army as well as cooperative local Serbian forces.
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).
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
Historically, financial crises have been followed by a wave of governments defaulting on their debt obligations. The global economic history has experienced sovereign debt crisis such as in Latin America during the 80s, in Russia at the end of the 90s and in Argentina in the beginning of the 00s. The European debt crisis is the most significant of its kind that the economic world was seen started from 2010. Financial crises tend to lead to, or exacerbate, sharp economic downturns, low government revenues, widening government deficits, and high levels of debt, pushing many governments into default. Greece is currently facing such a sovereign debt crisis and Europe’s most indebted country despite its surplus in the early 2000s. Greece accumulated high levels of debt during the decade before the crisis, when the capital markets were highly liquid. As the crisis has unfolded, and capital markets have become more illiquid, Greece may no longer be able to roll over its maturing debt obligations. Investment by both the private and the public sectors has ground to a halt. Public sector debt has increased substantially as the state had to rely on official assistance to payroll expenses, fiscal deficit and fund social payments.
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).
From its birth in 1918 to its death in the 1990’s, Yugoslavia has always been a whole. Yugoslavia was kept together by it’s diplomacy and their good reputation and achievements during the administration led by Tito. As a result of his death, neighbors that lived in peace for decades turned on each other, ethnic hatred was occuring and republics were declaring independence one after the other. The country was gradually falling apart. There were many reasons for the breakup of Yugoslavia but one of the most important one was realism which basically deals with politics.
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.
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.
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.