Croatia Economic Outlook
November 27, 2018Monthly data indicates that the economy lost some steam in Q3, following solid growth in the previous quarter that was mainly driven by healthy domestic demand. After expanding modestly in Q2, the industrial sector contracted in Q3, largely owing to a drop in production of food and fabricated metal products. On the expenditure side, retail sales growth cooled in Q3 despite strong real wage increases and the tighter job market which saw the unemployment rate fall to its lowest in over two decades, pointing to somewhat weaker private consumption in the quarter. Meanwhile, available data sends mixed signals for Q4: In October, consumer sentiment deteriorated slightly from Q3’s average, while business confidence gained ground. On the fiscal front, in early November the government unveiled its 2019 budget, which projects higher revenues stemming mainly from economic growth and targets a small deficit of 0.4% of GDP.
Croatia Economic GrowthThe economy is expected to maintain a solid pace of growth next year chiefly on the back of healthy household spending, which should be propped up by rising remittances, wages and employment. In addition, business investment is poised to benefit from sustained favorable financing conditions, while higher absorption of EU structural funds should power public investment. Downside risks to the outlook are largely external; particularly, a slowdown in Croatia’s main trading partners or increased competition from other tourist destinations in the Mediterranean could dampen export performance. FocusEconomics panelists project GDP growth of 2.7% in 2019, unchanged from last month’s forecast, and 2.5% in 2020.
Croatia Economy Data
5 years of Croatia economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.13||0.0 %||Dec 12|
|Exchange Rate||6.49||-0.54 %||Dec 12|
|Stock Market||1,716||-0.48 %||Dec 12|
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Croatia Economic News
November 30, 2018
The Croatian economy weakened marginally in the third quarter, according to detailed GDP data released by the Statistical Institute on 30 November, with annual economic growth ticking down to 2.8% from 2.9% in the second quarter.
November 29, 2018
In October, industrial output fell 2.4% in working-day adjusted terms over the same month last year, moderating slightly from the 2.6% drop recorded in September and marking the fourth consecutive month of year-on-year contractions. October’s dip mainly reflected a marked decline in manufacturing output, primarily of fabricated metal and food products.
November 16, 2018
Consumer prices rose 0.6% from the previous month in October, slightly below the 0.8% increase recorded in September.
October 30, 2018
In September, industrial output fell 2.6% in working-day adjusted terms over the same month last year, deteriorating further from 1.0% drop recorded in August and marking the worst reading in nearly four years.
October 16, 2018
Consumer prices rose 0.8%—a one-year high—from the previous month in September, following the flat reading recorded in August.