In the third quarter, GDP grew 0.7% over the same quarter the year before, according to the second GDP estimate released by the Croatian Bureau of Statistics on 20 December. The print came in slightly above the 0.6% increase reported in the 25 November flash estimate, but still was a notch below the 0.8% rise recorded in the previous quarter. The main cause of the modest third quarter deceleration was a sharp deterioration in domestic demand (Q2: -2.0% year-on-year; Q3: -4.2% yoy), which this was partially offset by a marked improvement in the external sector. Private consumption grew 0.1% over the same period last year, which was down from the 0.6% rise seen in the second quarter. Public spending declined 0.4% (Q2: +1.7% yoy), due to government efforts to contain the fiscal deficit. Meanwhile, fixed investment deteriorated further to an outright contraction of 8.4% (Q2: -7.3% yoy), which represents the sharpest decline since Q3 2010. The external sector's net contribution to overall economic growth improved markedly due to a significant decline in import growth, while exports accelerated over the previous quarter. Imports contracted 8.3% in the third quarter, down from a 6.0% decline in the second quarter. On the other hand, exports of goods and services grew 2.0% (Q2: +1.1% yoy). As a result, the external sector's net contribution improved from 3.5 percentage points in the second quarter to 5.0 percentage points in the third. At the sector level, the third quarter slowdown was caused by a sharp contraction in the industrial sector (Q2: +2.2% yoy; Q3: -2.4% yoy). On the other hand, the service sector accelerated from a 0.6% increase in the second quarter to a 0.9% rise in the third, while agriculture rose 4.0% from a flat reading in the previous quarter.
Economy slows less than initially expected in third quarter
December 20, 2011
Looking for forecasts related to GDP in Croatia? Download a sample report now.
Croatia Economic News
October 17, 2016
In September, consumer prices increased 1.0% from the previous month, which contrasted August’s 0.2% drop and marked the highest reading in four years.
September 29, 2016
After months of political conflict had led the government to collapse in June, snap elections were held in Croatia on 11 September.
September 29, 2016
In August, industrial output rose 2.5% over the same month of last year in seasonally and working-day adjusted terms, which represented an acceleration over July’s weaker 1.2% increase.
September 15, 2016
In August, consumer prices declined 0.2% over the previous month, which was a softer drop than July’s 0.7% decrease.
September 2, 2016
In July, industrial output rose 1.2% over the same month of last year in working-day adjusted terms, which represented a significant slowdown from June’s 4.1% increase and the lowest result in seven months.