Croatia Economic Outlook
September 3, 2019Recently-released national accounts data revealed that the economy lost pace in the second quarter, albeit following an exceptionally robust first-quarter upturn. After logging the strongest expansion in over a decade in Q1, consumer spending softened amid slower wage growth and higher inflation in Q2. Similarly, fixed investment growth cooled, although remained strong nonetheless, while government expenditure picked up, cushioning the overall slowdown somewhat. Meanwhile, the external sector dragged on growth as exports waned amid a decline in merchandise shipments. Looking ahead, upbeat confidence in the services sector and improved sentiment in retail trade in July bode well for business activity at the start of Q3. In other news, the government announced a new round of tax cuts in late July aimed at young people as part of an effort to stem emigration. The measures are set to come into effect next year, which could provide a boost to disposable incomes.
Croatia Economic GrowthGrowth is seen shifting into a higher gear this year, underpinned by firm domestic demand. Healthy real wage growth, a tightening job market and tax relief measures should spur consumer spending, while continued absorption of EU structural funds should buoy investment activity. A slowing EU economy and tourism industry amid increased competition weigh on the outlook. FocusEconomics analysts expect growth of 2.9% in 2019, which is down 0.1 percentage points from last month’s forecast, and 2.5% in 2020.
Croatia Economy Data
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|Bond Yield||0.62||0.0 %||Sep 04|
|Exchange Rate||6.71||-0.54 %||Sep 04|
|Stock Market||1,869||-0.48 %||Sep 04|
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Croatia Economic News
September 16, 2019
Consumer prices declined 0.3% from the previous month in August, following a sharper 0.5% fall in July.
September 2, 2019
In July, industrial production rose a solid 3.0% in working-day adjusted terms over the same month last year, rebounding from June’s 5.6% plunge.
August 28, 2019
The economy lost momentum in the second quarter, according to detailed GDP data released by Croatia’s Statistical Institute (CBS) on 28 August.
August 16, 2019
Consumer prices declined 0.5% from the previous month in July, following the 0.3% dip recorded in June.
July 30, 2019
In June, industrial production plunged 5.6% in working-day adjusted terms over the same month last year, contrasting May’s soft 0.2% expansion.