Thanks to the growth in consumption and investments, Croatia's economy continued to grow in the third quarter of this year, marking the 15th consecutive quarter of expansion, with a year-on-year increase of 3.9%, surpassing the growth rate of the previous quarter.

The Croatian Bureau of Statistics (DZS) published its preliminary estimate on Wednesday, indicating that the gross domestic product (GDP) grew by 3.9% in real terms in the third quarter compared to the same period last year.

This marks the 15th consecutive quarter of economic growth, and at a faster pace than the previous quarter, which saw a growth rate of 3.5%.

Growth in Consumption and Investments

According to DZS data, household consumption, the largest component of GDP, rose by 5.5% in the last quarter compared to the same period last year. However, this was slower than the 6% growth recorded in the previous quarter.

Gross fixed capital investment increased by 9.2% year-on-year, which was slower than the 11.7% growth recorded in the previous quarter.

Public Spending and Trade

Government spending also increased by 5.3%, following a 3.8% rise in the previous quarter.

Imports of goods and services rose by 4.1%, slower than the 5.2% increase in the previous quarter. Specifically, imports of goods increased by 3%, while imports of services surged by 9.6%.

Exports of goods and services grew by 1.5% year-on-year in the last quarter, rebounding from a 1.3% decline in the previous quarter. Within this, exports of goods increased by 6.3%, while exports of services fell by 1.8%.

Growth Above EU Average

Seasonally adjusted DZS data shows that the economy grew by 4.1% year-on-year and 0.8% quarter-on-quarter in the third quarter.

This growth rate significantly outpaced the EU average. According to Eurostat, the EU economy grew by 0.3% quarter-on-quarter and 1% year-on-year in the last quarter, based on seasonally adjusted data.

The eurozone economy grew by 0.4% quarter-on-quarter and 0.9% year-on-year during the same period.