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Croat 2012 Deficit to Overshoot Target: Economy Minister

Croatia’s budget deficit this year could reach 10.8 billion kuna ($1.8 billion), 800 million kuna more than originally planned, Economy Minister Radimir Cacic told state radio today.

The Adriatic nation, set to join the European Union in July, is struggling to revive the economy after three years of recession and stagnation. The government said in January it will reduce spending by 4 billion kuna this year to narrow the budget gap to 2.9 percent of output from 4.2 percent in 2011.

The government forecasts the economy will stagnate this year, while the European Commission said on Nov. 7 it will shrink 1.9 percent.

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