Question

1- Over the past 3 years the ratio of fixed investment to GDP of Croatia has...

1- Over the past 3 years the ratio of fixed investment to GDP of Croatia has ? (Kindly mention the source)

1-Increased…

2-Stagnated

3-Decreased

2- the public finance of Croatia is in deficit or Surplus? and for how many years?

Homework Answers

Answer #1

Over the past 3 years the ratio of gross fixed investment to GDP of Croatia has increased from 20.01% of GDP in 2017 to 20.673% in 2019 according to the World Bank. Whereas according to EUROSTAT general government gross fixed capital formation has increased to 4.3% in 2019 from 3.5% and 2.8% in 2018 and 2017. Thus fixed investment has increased.

The public finance is the revenue the government earns and the amount it spends in the economy. If the expenditure is higher than the revenue, than the country runs a deficit, where as if the revenue is greater than the expenditure, then the country runs a surplus.

Public finance of Croatia is in a surplus as its Government surplus is positive as a percentage of GDP at 0.4% in 2019 and 0.2% in 2018 and 0.8% in 2017. Thus its been in surplus for last three years whereas earlier it was in deficit.

Source: World bank database., EUROSTAT.

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