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Improving Croatian economy Improving Croatian economy

Positive outlook for Croatian economy as GDP continues to rise

By  Feb 07, 2018

This year the European Commission expects a 2.8 percent GDP growth in Croatia, as was estimated three months ago, whereby personal consumption should remain the main driver of growth.

The Commission foresees an economic growth of 2.7 percent for 2019. With this rate of recovery, the Croatian economy will return to the pre-crisis level in 2019, the Commission predicts.

After a recent revision of the data, real GDP growth in 2016 increased by 0.3 percentage points to 3.2 percent, "and this growth rate is likely to remain in 2017, as economic activity in the first three quarters were strong," the Commission stated.

However, "some indicators indicate a slowdown in the fourth quarter. Slower rhythm in the fourth quarter is likely to be passed even in 2018," the Commission estimates. This is the fourth year in which the Croatian economy continues to recover, and the Commission states that this recovery remains solid and broad-based.

"Personal consumption remains the main driver of growth, and growth in salaries and employment increases the disposable income and consumer confidence,” the report concluded.