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Croatia amongst top ten safest world economies

By  Aug 23, 2017

Global risk index in economy, which takes into account only four criteria, has proved quite favourable for Croatia.

Based on three out of four measured data, Croatia has been included in the company of the least risky economies in the world.

The global risk index in economy is Bloomberg's index which measures the share of international reserves of the central bank, excluding the state gold in GDP, the share of the unemployed in a society, the rate of inflation and the fluctuation rate of the exchange rate.

As far as Croatia is concerned, the country has a high reserve share of almost 26 percent, thus, according to this criterion Croatia is among the nine least risky countries in the world. Due to the expectation of a low inflation rate of only 1.2 percent, the country has placed as the 14th in the world.

However, when it comes to employment, Croatia is a risky country. According to the International Labour Organization (ILO), this year Croatia should have an unemployment rate of 11,7 percent, thus, the country is the 75th among 82 countries that carried out these measurements. Croatia did not measure fluctuations in domestic currency exchange rates. All and all, Croatia has left a good impression in the overall research that has taken into account a very narrow field of economy.

Furthermore, Russia is in a worse position than Croatia in terms of reserves, among other things, due to the fact that its central bank has a large share of gold reserves that has not been taken into account.

The rate of inflation is often growing faster if the economy is growing intensely thus if GDP growth is not taken into account as a parameter but only inflation, the low level of inflation can be perceived as a factor of additional stability.

In addition, the lowest risky country in terms of the rate of inflation is Switzerland, in terms of the share of reserves in GDP is Hong Kong, whilst Qatar is the least risky country when it comes to employment with only 0,3 percent of the unemployed.

The Voice of Dubrovnik


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