Tuesday, 11 August 2020
New forecasts from the European Commission - only two EU members will have a larger drop in GDP than Croatia Pixabay

New forecasts from the European Commission - only two EU members will have a larger drop in GDP than Croatia

By  Jul 07, 2020

Croatia will face even more severe consequences of the Covid-19 pandemic than previously thought. According to the latest forecasts published yesterday by the European Commission, the decline in GDP in Croatia this year will be as much as 10.8 percent, and next year the recovery will begin and growth will be 7.5 percent of GDP.

Only Italy with a drop of 11.2 percent and Spain with 10.9 percent will have a bigger drop than Croatia. A similar category includes France, which is expected to fall by 10.6 percent, and Greece, which is down by 9 percent. From this it is evident that the countries for which tourism is one of the key branches will be the hardest hit. Poland, which should have a 4.6 percent drop, and Sweden, 5.3 percent, will feel the least.

 

 

The latest report of the European Commission, along with summer forecasts, states that the Croatian economy was more resilient before the outbreak of the crisis than before the global financial crisis in 2008.

“Private consumption should recover quickly after the opening of the economy because it seems that mass layoffs have been avoided thanks to government support. Current and new EU-funded projects and several liquidity grants for companies should help recover investments,” the European Commission said.

They predict that tourism will be in trouble next year due to the continuation of disruptions in international traffic.

 

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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