The European Commission estimates that Croatia's economy will grow by 3.3 percent this year, while in its previous forecasts from February, it predicted growth of 2.6 percent. For the next year, 2025, it forecasts growth of 2.9 percent, slightly higher than the 2.8 percent forecast in February.

Croatia, along with Romania, which also has an estimated growth of 3.3 percent, is expected to have the second highest GDP growth in the EU after Malta, which is projected to grow by 4.6 percent.

“Croatia's GDP is expected to grow by 3.3 percent in 2024 and 2.9 percent in 2025, primarily driven by strong household consumption. The labour market is expected to remain tight, with continued employment growth and a drop in the unemployment rate to new lows. Inflation is forecasted to gradually decline during the projected period,” the Commission states.

Inflation is expected to slow to 3.5 percent in 2024 and 2.2 percent in 2025, mainly due to a slowdown in prices of processed food and non-energy industrial goods. Service prices, driven by rising wages and strong consumer demand, including from foreign tourists, remain the most persistent component of inflation.

Due to strong growth and despite an increase in the deficit, the public debt-to-GDP ratio is expected to fall below 60 percent this year, to 59.5, and to 59.1 percent next year.

Budget revenues have grown strongly due to high inflation, a good tourist season, and strong wage growth in both the public and private sectors. At the same time, budget expenditures have significantly increased due to wage hikes, social assistance, rising interest rates, and investments.