New edition of Croatian Economic Outlook: GDP growth in 2017 to stand at 3.1 percent

In the new edition of Croatian Economic Outlook (No. 71/September 2017) analysts from The Institute of Economics, Zagreb provide the latest forecasts and an analysis of economic trends in Croatia.  


From this issue: 

Following a rebound in activity during 2015, the Croatian economy grew at the same rate as the global economy in 2016—by 3.0 percent. Growth momentum was carried over into the first half of the current year with year-on-year growth figures of 2.5 and 2.8 percent for the first two quarters, respectively. Seasonally adjusted quarter-to-quarter growth rates show an increase in activity in the first two quarters by 0.4 and 0.9 percent, with all three domestic components of GDP expanding on a steady recovery path. We foresee a continuation of this recovery trend in the short to medium term, with growth rates slightly higher than in 2016. We now estimate GDP growth in 2017 to stand at 3.1 percent, down by 0.2 percentage points from our last estimate mainly because of the higher-than-expected rise of imports. This trend, supported by increased consumer optimism, announced income-increasing measures (namely, an increase of pensions and public-sector wages), a stable HRK/EUR exchange rate, and increasing growth prospects of our main trading partners, is forecasted to continue in 2018 with a growth rate of 3.3 percent.