Croatia Economic Outlook
October 2, 2018Healthy economic activity seems to have held up in the third quarter, following a solid second-quarter expansion that was chiefly driven by external demand. The labor market continued to improve, reflected by the unemployment rate hitting all-time lows in July and again in August. Despite inflation firming up recently, robust gains in nominal wages have propped up real household incomes, likely contributing to the modest rise in annual retail sales growth in July. Although the number of tourist arrivals dropped slightly in year-on-year terms in the same month, they rose solidly on aggregate in January through July, pointing to another record year for tourist visits. Meanwhile, on 21 September, S&P Global Ratings revised Croatia’s credit rating outlook from stable to positive, owing to their expectations that the economy will continue to strengthen and its fiscal and debt metrics improve.
Croatia Economic GrowthSolid growth is expected to continue next year, underpinned by healthy gains in private consumption and increased capital spending. A dynamic tourism industry should also contribute to maintain a healthy current account surplus. Meanwhile, risks associated to the disorderly restructuring of Agrokor, the country’s largest private employer, have dissipated after creditors reached a debt-settlement deal in July. Downside risks to the outlook stem mainly from the external environment in which an escalation of the China-U.S. trade war or a slowdown in Italy and Germany, Croatia’s main trading partners, could dent export activity. FocusEconomics panelists project GDP growth of 2.7% in 2018 and 2.7% again in 2019, unchanged from last month’s forecast.
Croatia Economy Data
5 years of Croatia economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.16||0.0 %||Oct 12|
|Exchange Rate||6.41||-0.54 %||Oct 12|
|Stock Market||1,773||-0.48 %||Oct 12|
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Croatia Economic News
September 28, 2018
In August, industrial output fell 1.0% in working-day adjusted terms over the same month last year, deteriorating further than the 0.9% drop recorded in July. August’s dip was largely driven by a sharper decline in manufacturing output compared to the previous month.
September 14, 2018
Consumer prices were unchanged from the previous month in August, contrasting the 0.9% drop recorded in July.
September 3, 2018
In July, industrial output fell 0.9% in working-day adjusted terms over the same month last year, contrasting the 3.1% rise recorded in June. July’s dip was largely driven by a drop in manufacturing output, which had expanded in the previous month.
August 31, 2018
The Croatian economy gained momentum in the second quarter, according to detailed GDP data released by the Statistical Institute on 31 August.
August 17, 2018
Consumer prices dropped 0.9% from the previous month in July, contrasting the flat reading recorded in June.