Croatia: GDP accelerates and posts highest expansion in over six years in Q1 2015
June 5, 2015
GDP expanded 0.5% in Q1 2015 over the same quarter of the previous year, according to detailed figures released by the Croatian Bureau of Statistics on 5 June. The reading was in line with the 29 May flash estimate and was above the 0.2% growth tallied in Q4 2014. The print represented the second consecutive expansion in annual terms and the best result since Q4 2008.
The expansion in Q1 resulted from stronger domestic demand. Private consumption increased 0.3% over the same quarter of the previous year (Q4: -0.5% year-on-year), and government spending grew 0.6% (Q4: -0.5% yoy). Gross fixed capital formation improved from Q4’s 4.1% annual decline to a 0.4% contraction in Q1.
On the external side of the economy, exports of goods and services grew 7.2% in Q1, which was above the 5.9% growth recorded in Q4. Imports grew 5.7% (Q4: +0.3% yoy). As a result, the external sector’s net contribution to overall economic growth declined from 2.1 percentage points in Q4 to zero percentage points in Q1.
Author: Eric Denis , Economist