In its latest Financial Stability publication, the central bank warns that a crisis on the state debt market in the eurozone increases a risk of weakening the recovery of the international economy, also affecting Croatia's prospects for the economic upturn based on export growth.

The HNB suggests that it is necessary to pursue an economic policy based on the national economy's competitiveness and on making the public sector solvent.

In a baseline scenario in the publication, Croatia's GDP will move in a moderately negative zone with a fall of up to 1.6 percent.

The reduction of external imbalance is expected to continue in the form of a lower current account deficit with about 4 percent of GDP and a slower rise in the foreign debt.