Budget Deficit and Public Debt in Croatia

The effects of recession in 2009, together with a late fiscal policy reaction, led to a Croatian general government budget deficit of 11 billion kuna. Financing this deficit and other liabilities by new borrowing resulted in a public debt increase of 18% from 2008 to end-2009. Especially concerning might be the public debt denominated in foreign currencies which increased by 36% in only a year