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ZAGREB, June 28 (Xinhua) -- The International Monetary Fund(IMF) said on Tuesday Croatia's economy was recovering but warned challenges remained, including high debts and elevated unemployment.
Croatian economy was gradually recovering from a six-year recession thanks to exports, tourism and private consumption, a press release from the IMF said.
These facts together with better absorption of EU funds were expected to boost economic growth in 2016, it said, adding Croatia's GDP would increase 1.9 percent this year, 2.1 percent in 2017.
However, the IMF said the country faced challenges, such as GDP stood below its pre-crisis level and unemployment did not decline.
Croatia's business environment was still lagging behind most EU countries, it added.
The country should implement structural reforms, including simplifying the tax system, introducing real estate tax and implementing pension reforms, it said. Enditem
