Croatia Economic Outlook
March 6, 2018Annual GDP growth slowed notably in the fourth quarter, restrained by slower fixed investment growth and a weak external sector. High-frequency indicators suggest, however, that the economy regained some strength in Q1 of this year. In January, the number of tourists grew at a double-digit rate year-on-year, and in February consumer confidence strengthened, boding well for household spending. Moreover, business sentiment jumped in the second month of the year. However, the unemployment rate increased in January, although this was again due to seasonal factors. Uncertainty continues to surround the debt restructuring plan for retail giant Agrokor. In late February, the government-appointed emergency administrator resigned due to a conflict of interest, prompting a temporary suspension of public trading of the company’s stock; a new administrator was subsequently appointed. A deadline for the restructuring has been set for early July. Exceeding it could hurt Agrokor providers and banks’ balance sheets.
Croatia Economic GrowthA strong tourism sector, rising wages and positive labor market dynamics should underpin consumer spending this year. Moreover, an increased disbursement of EU funds and low interest rates are expected to spur fixed investment. Financing conditions could, however, deteriorate if the Agrokor restructuring process is not successfully accomplished. Public sector wage increases and growing public investment spending will push the public budget back to deficit, although the fiscal stance will remain broadly prudent. FocusEconomics panelists project GDP growth of 2.8% in 2018, unchanged from last month’s forecast, and 2.7% in 2019.
Croatia Economy Data
5 years of Croatia economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.26||0.0 %||Mar 15|
|Exchange Rate||6.05||-0.54 %||Mar 15|
|Stock Market||1,843||-0.48 %||Mar 15|
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Croatia Economic News
March 13, 2018
Industrial output declined 0.4% in working-day adjusted terms from the same month last year in January, a softer contraction from December’s 2.4% drop, which marked the worst result in almost three years. January’s result was dragged down a sharp contraction in production in the electricity, gas, steam and air conditioning sector, while the production in the mining and quarrying, and manufacturing sectors rebounded from the previous month.
February 28, 2018
The economy lost considerable steam in the fourth quarter of 2017, restrained by a softer increase in exports and weaker fixed investment growth, which was likely held back by the restructuring of Croatia’s largest private company, food giant Agrokor.
February 27, 2018
Consumer prices dropped 0.2% in January compared to the previous month, following a sharper 0.4% fall in December.
January 29, 2018
Industrial output dropped 2.5% in working-day adjusted terms from the same month last year in December, a sharper contraction from November’s 1.7% drop and marking the worst result in almost three years. December’s result was dragged down by contractions in the mining and quarrying, and manufacturing sectors.
January 23, 2018
Consumer prices dropped 0.4% in December compared to the previous month, following a flat reading in November.