The European Commission on Wednesday revised markedly upward Croatia's GDP growth in 2019 to 3.1% from first estimates of 2.6%.
"Real GDP growth is forecast to pick up to 3.1% in 2019 as a whole before moderating to 2.7% in 2020," the Commission says in its interim European Economic Forecast for the summer 2019.
The Commission also notes that the rise is on the back of domestic demand. "Domestic demand remained the main driver of growth due to strengthening investment and robust household consumption," reads the report.
Croatia's exports rebounded following an unexpected contraction in the previous two quarters. "High frequency indicators, labour market and survey data all suggest strong domestic demand-driven growth should continue throughout 2019."
In the previous Economic Forecast paper issued in May, Croatia's economy was forecast to rise 2.6% this year, and the pace of growth was to decelerate to 2.5% in 2020.
"Croatia’s economy grew by 2.6% in 2018, slightly less than expected due to a particularly weak fourth quarter. However, real GDP growth rebounded beyond expectations in the first quarter of 2019 by 1.2% quarter-on-quarter," reads the latest report issued on Wednesday..