Croatia's battered economy could grow annually by up to four percent in "the coming years" on the back of big public investment projects and EU funds, but it must also improve its poor image as a place to do business, its economy minister said.
Croatia, which became the European Union's 28th member state in July, has been mired in recession for five years and its economy, heavily reliant on tourism, is hampered by red tape, graft, communist-era infrastructure and a high budget deficit.
The Social Democrat-led government expects the former Yugoslav republic of 4.4 million to eke out growth of 0.2 percent in 2013 - though most economists predict a decline of about one percent - and to accelerate to 1.3 percent in 2014.
"I believe (planned) investments in the public sector could suffice for growth of 1.3 percent next year, but our goal is also to improve Croatia's poor investment image and increase private sector investments," Economy Minister Ivan Vrdoljak told Reuters in an interview on Wednesday.
"2014 is the first full year of our EU membership and I strongly believe EU development funds will also tangibly contribute to our growth result next year," Vrdoljak added.
"We want to achieve growth of 3-4 percent annually in the coming years." Croatia plans to publish in the first half of 2014 tenders for gas and oil exploration concessions in central and southern regions of the Adriatic Sea and in the second half for onshore projects, Vrdoljak said, adding they should help boost growth.
Large public sector investments for 2014 include the building of two thermal power plants and improving Croatia's transport infrastructure, such as boosting the capacity of the airport in the capital Zagreb.
Croatia should also benefit from new investment laws which speed up procedures for obtaining various licences, he said.
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