Croatia Economic Outlook
July 31, 2018Sequential data indicates that robust economic activity continued through Q2, following a solid performance in Q1 that was largely driven by buoyant domestic demand. Retail sales grew at nearly double the pace on average in April–May compared to in the first quarter, propelled by healthy gains in real wages and a strong labor market. The unemployment rate fell below 10% for the first time on record in May and declined further in June. Coupled with a sturdy increase of tourist arrivals in the same period, mainly from Austria and Germany, this signaled another robust expansion for private consumption in the quarter. Meanwhile, creditors of the highly-indebted food and retail giant Agrokor voted to approve a debt settlement deal in early July, whereby Russian state banks would acquire a nearly 50% equity stake of the new creditor-owned company—averting the bankruptcy of Croatia’s largest private employer. In the same month, Fitch Ratings upgraded the country’s credit rating outlook to positive from stable due to the strong fiscal metrics and current account surplus, boding well for increased foreign investment inflows.
Croatia Economic GrowthEconomic growth should remain robust this year, underpinned by a booming tourism sector, which available data points to a new record-breaking season for arrivals this year, and healthy consumer spending on the back of rising household real incomes and falling unemployment. The national football team’s successful FIFA World Cup campaign is also likely to have provided a boost to personal spending during the summer months. FocusEconomics panelists project GDP growth of 2.7% in 2018, unchanged from last month’s forecast, and 2.7% again in 2019.
Croatia Economy Data
5 years of Croatia economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.17||0.0 %||Aug 14|
|Exchange Rate||6.55||-0.54 %||Aug 15|
|Stock Market||1,820||-0.48 %||Aug 14|
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Croatia Economic News
July 31, 2018
In June, industrial output rebounded to an eight-month high of 3.1% in working-day adjusted terms over the same month last year, contrasting the 0.7% contraction recorded in May.
July 17, 2018
Consumer prices remained unchanged from the previous month in June, contrasting the 0.4% rise recorded in May.
June 29, 2018
Industrial output fell 0.7% in working-day adjusted terms from the same month last year in May, contracting for the third consecutive month, albeit at a softer pace than in April, when it fell 1.3%. May’s result was driven by a sharper annual contraction in the mining and quarrying sector compared to April.
June 15, 2018
Consumer prices rose 0.4% from the previous month in May, slightly below the 0.7% rise recorded in April.
June 1, 2018
The economy grew at a healthy pace in the first quarter of the year as domestic demand expanded at the fastest clip since the third quarter of 2008.