Croatia’s economic bounce back from the Covid pandemic seems to be well on track. And the Minister of Finance, Zdravko Maric, stated on Thursday that the country’s gross domestic product could grow by seven percent this year. The early prediction was that Croatia’s GDP would climb by 5 percent this year, which was an impressive prediction, however seven percent is even more imposing.
From the beginning of the year until the end of August tax revenue climbed slightly over 2020 by 0.7 percent, but the real boost was seen with value added tax where a growth of more than four percent was recorded. There is no doubt that this increase in VAT collections is connected directly and indirectly to the tourism season, highlighting just how important tourism is to the health of the economics of the nation.
Croatia's economic output rose by a real 16.1 percent year-on-year in the second quarter of 2021, the statistical office said last week. This is compared to a more than eight percent drop last year.