Croatia: GDP growth speeds up in Q1
June 7, 2016
GDP expanded 2.7% in Q1 over the same quarter of last year, according to more complete data released by the Croatian Bureau of Statistics on 7 June. The reading was up from the 1.9% growth tallied in Q4.
The acceleration in Q1 reflected a less negative contribution from the external sector, while growth in domestic demand decelerated. Private consumption increased 3.1% over the same quarter of last year (Q4: +2.4% year-on-year), marking the best result since Q1 2008. Fixed investment rose 4.3%, which was above Q4’s 3.7% increase and represented the highest reading since Q3 2008. However, government consumption grew 0.6% annually, which was a slight slowdown compared to Q4’s 0.8% growth. Moreover, overall growth was negatively affected by a sharp destocking process.
On the external side of the economy, exports of goods and services grew 7.1% in Q1, which was below the 11.6% growth recorded in Q4, while imports grew 6.1% (Q4: +13.6% yoy). The external sector’s net contribution to overall economic growth improved in Q1, rising from minus 1.0 percentage points in Q4 to minus 0.2 percentage points.