Croatia Economic Outlook
May 12, 2020Incoming data points to a deep recession as the economy reels from Covid-19 fallout, with Croatia expected to be one of the hardest-hit economies in the region due to its dependence on tourism and given that Italy is its largest trading partner. Retail sales recorded the largest drop since early 2010 in March, as self-isolation and physical distancing measures took hold. Moreover, industrial production also recorded a significant drop in March and consumer confidence nosedived in April. In order to combat the economic damage, the government unveiled several stimulus measures in March and April, and on 7 May adopted a revised budget accounting for the change in fiscal picture. The revised budget now targets a higher 7% of GDP deficit and forecasts an over 15% drop in government revenues due to the pandemic.
Croatia Economic GrowthGDP is set to record the largest contraction since 2009 this year, as Covid-19 ravages the important tourism sector. The pandemic will also depress export demand, particularly from key partner Italy, while government finances are seen deteriorating notably this year. FocusEconomics panelists forecast the economy to shrink 7.9% in 2020, which is down 3.2 percentage points from last month’s estimate, and to expand 4.4% in 2021.
Croatia Economy Data
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|Bond Yield||0.67||0.0 %||Dec 31|
|Exchange Rate||6.64||-0.54 %||Jan 01|
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Croatia Economic News
June 30, 2020
Industrial production plummeted 12.4% year-on-year in working-day adjusted terms in May (April: -11.0% yoy).
June 16, 2020
Consumer prices increased 0.10% over the last month in May, swinging from April's 0.20% drop.
June 8, 2020
On 18 May, Croatian lawmakers voted to dissolve Parliament, paving the way for general elections to be called for 5 July, several months before they were originally scheduled.
May 29, 2020
Industrial output collapsed 11.0% year-on-year in working-day adjusted terms in April (March: -4.9% year-on-year), marking the worst downturn since June 2009.
May 29, 2020
Economic activity moderated in the first quarter on the initial impact from the Covid-19 pandemic, with GDP increasing just 0.4% on an annual basis (Q4 2019: +2.5% year-on-year), marking the worst reading since Q3 2014.