Construction projects in Croatia
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CROATIA, 2013/01/07
"The Croatian government's reforms have so far been insufficient to eliminate the structural rigidities that hamper the country's increase potential," the rating agency said in a statement explaining its decision to lower Croatia's rating from BB+ to BB-.
"Labor and product market flexibility in Croatia is lacking," and there's "little room for public investment," because nearly three-quarters of the budget goes to central government spending, the agency added.
Noting that "since 2009, the Croatian economy has been either in recession or stagnant," Standard and Poor's estimates "about a 2 % contraction for 2012."
