The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This paper examines the Croatia's Request for a Stand-By Arrangement (SBA). Despite a disappointing merchandise trade performance, strong exports of services and private transfers have helped restrain the current account deficit. The authorities' program for 2003 constitutes a major step toward long-term fiscal sustainability and higher economic growth. The authorities recognize that more needs to be done in the future to boost the population's standard of living and put Croatia on a firm path of real convergence with the European Union. The IMF staff supports the authorities' request for a SBA.