The division between saving and investment and consumption remains to be seen. Overall, the 1998 budget neither weakens nor spectacularly improves prospects for economic growth, over 1997. Regardless of statistical imperfections, the direction and dynamics of these figures suggest that Croatian economy is heating up and economic reforms to achieve a long-term sustainable growth are needed soon. Compared to 1997 and before, these projections are very ambitious, but impossible. But since macroeconomic results do not come by themselves and since the economy is not alchemy, the real question is which instruments will be used to achieve these ambitious macroeconomic objectives.
Fiscal policy is just one.