Lower income tax rates in Croatia make sense

Even as fiscal deficits balloon, lowering tax rates makes sense

Lowering income tax rates makes sense even as budget deficit and public debt levels rise. Namely, compared to peers and neighbours, Croatia remains a high tax jurisdiction and lower rates may well stimulate revenue growth and improve the business environment

Hope for a quick recovery, but don’t expect it

A V-shaped economic recovery is unlikely. Even if the coronavirus were to disappear, high indebtedness, unemployment, Sino-American tensions and falling global trade suggest a gradual and uneven recovery is more likely.
Differing policy response options underline diverse nature of South East Europe

Coronavirus exposes the extent of diversity in South East Europe

The coronavirus pandemic means the whole of South East Europe will experience a deep recession. Difference starting points, constraints and policy choices underline the diversity of the region.