CROATIAN ECONOMY IN TERMS OF THE GLOBAL RECESSION

This paper examines Croatian economy in terms of the global recession. This recession has ignited the discussions on the sustainability of the current global economic system. Authors examine some of the most relevant contributions concerning to this problem and present their own position related to those issues. It is evident that this recession accelerated global shifts in the real and financial sectors towards the leading emerging markets. The specifics of those markets are a higher level of resistance to the global crisis
in general, and therefore their recovery is expected to be a short-term one, while it is assumed that a full recovery for the developed economies is a mid-term issue. Consequences of this recession are present in Croatian economy as well. They underlined the already
existing discussions of the current model of economic development. A more consistent approach to the issues of competitiveness, comparative advantages, development financing, and completion of the process of structural adjustments of the Croatian economy are
being discussed in this paper. Thus a modified approach to the philosophy of development based on the revitalization of the export sectors, especially of the Croatian manufacturing sector is being discussed.