The European Commission on Thursday mildly revised down Croatia's growth outlook from the initial 3.1% to 2.9% in 2019, due to a slower growth rate in the country's main trading partners, and in the next two years, the EC expects investments to robustly rise in Croatia, alongside a record low employment rate and a declining public debt.
"As growth in Croatia’s main trading partners moderates, domestic demand will remain the main driver of economic activity,".the EC says in its latest document called "European Economic Forecast for 2019, 2020 and 2021".
"Household consumption remains strong, driven by growing employment and wages as well as low inflation. Investment is set to continue growing strongly, backed by EU funds, and government consumption is also expected to support growth. The economy should continue adding jobs, but at a slower pace as labour shortages appear in some sectors," reads the document's section on Croatia.
The Commission also expects Croatia's the debt ratio "to continue declining steadily as the general government balance turns from mildly positive to neutral."
In 2020, Croatia's growth is set to rise at a rate of 2.6% and in 2021 by 2.4%.
In the previous document, the growth was projected at 2.7% both in 2020 and 2021.