Thursday, 30 June 2022
9.4 percent drop in GDP expected 9.4 percent drop in GDP expected Twitter

Croatia's economy expected to fall by 9.4 percent this year in COVID-19 driven recession

Written by  Apr 30, 2020

The Croatian government today adopted today the National Reform Program 2020 and the accompanying 2020 and 2021 Convergence Program. And the Prime Minister, Andrej Plenkovic, laid out the following, when it comes to the National Reform Program, he outlined three of its objectives: sustainable economic growth and development, linking education and the labour market, and the sustainability of public finances.

"This government has made a budget surplus three times in a row in the last 3.5 years. We have shown what it means to have a responsible management of public finances, healthy economic growth, increased employment. All of this is now unfortunately altered by the pandemic, and this program will be part of the work, in the new circumstances and the basis for the country's economic recovery, "the prime minister said.

He added that for the first time that Croatia's GDP is expected to fall by as much as 9.4 percent in 2020.

"The effect of this crisis on the world economy will be greater than for the global crises of 2008. All countries will bear economic consequences. However, unlike the previous crisis which lasted for a long time, recovery could still be faster here," said the Finance Minister, Zdravko Maric.



He then reiterated the statement of the prime minister that GDP is expected to fall by 9.4 percent this year, and next year the estimated growth of the Croatian economy is 6.1 percent.

Consumption is estimated to drop 7 percent this year, investment by 9 percent and exports as much as 30 percent. The only component of GDP that has a sign of growth is government spending, Maric said.

And the Prime Minister also brought up the sticky subject of tourism in Croatia this year, "We aim to have EU-wide borders open, but the situation is not the same in all countries and this should be taken into account," he stressed.

The Voice of Dubrovnik


Find us on Facebook