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Croatian Economy Outpaces Eurozone: CNB Projects Strong Growth and Lower Inflation Canva

Croatian Economy Outpaces Eurozone: CNB Projects Strong Growth and Lower Inflation

Written by  Dec 13, 2024

This year, gross domestic product (GDP) could grow by 3.7 percent in real terms, and by 3.3 percent in 2025, while inflation could slow to 3.5 percent next year after this year's four percent, according to the latest estimates from the Croatian National Bank (CNB) published on Friday at its annual press briefing.

With this, the CNB has slightly revised upwards its estimates of Croatian economic growth, as well as inflation, this year and next.

Namely, the CNB presented its latest estimates of GDP trends in mid-September, when it forecast economic growth of 3.6 percent for 2024 and 3.2 percent in 2025.

According to that earlier forecast, inflation measured by the Harmonized Index of Consumer Prices (HICP) was estimated at 3.9 percent this year and 3.4 percent next year.

As stated in the summary of the CNB's macroeconomic projections, real GDP growth in Croatia should significantly exceed the growth of the euro area and continue to contribute to real convergence. Namely, the estimates are that GDP in the common European currency area will average 0.7 percent this year and 1.1 percent next year.

Thus, although real GDP growth could slow down in the next two years, it will still remain relatively strong, according to the CNB's estimates. At the same time, as he states, the projected growth of Croatian GDP mainly reflects strong personal consumption, supported by developments in the labour market, investments, also supported by EU funds, as well as robust government spending.

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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