All arms of public policy need to pull together to combat the spread of the virus and support the economy through the recovery. Monetary and fiscal policy are key parts of the response. The package of measures introduced by the Reserve Bank Board in mid March are intended to support the Australian economy by keeping funding costs low and credit available.
With regard to price stability, the 12-month average rate of HICP inflation in Croatia was 4.7%, which is below the reference value of 4.9%. In terms of fiscal sustainability, Croatia’s general government budget balance was just below the 3% deficit reference value in 2021, while its debt ratio was above the 60% reference value but on a downward trajectory.