Croatia: GDP posts first expansion in annual terms in over two years in Q4
March 6, 2015
GDP expanded 0.3% in Q4 over the same quarter of the previous year, according to detailed figures released by the Croatian Bureau of Statistics on 6 March. The reading was in line with the 27 February flash estimate and contrasted the 0.5% contraction tallied in Q3. The print represented the first expansion in annual terms and the best result since Q3 2011.
In the full year 2014, GDP contracted 0.4%, which was down from 2013’s 0.1% drop.
The expansion in Q4 mainly resulted from improved performance of the external sector. Private consumption declined 0.6% over the same quarter of the previous year (Q3: -1.1% year-on-year), and government spending fell 0.5% (Q3: -1.4% yoy). Gross fixed capital formation inched down from Q3’s 3.6% annual decline to a 3.7% contraction in Q4.
On the external side of the economy, exports of goods and services grew 4.5% in Q4, which represented a pickup over the 4.1% growth recorded in Q3. Imports contracted 0.4% (Q3: +3.2% yoy). As a result, the external sector’s net contribution to overall economic growth rose from 1.1 percentage points in Q3 to 1.9 percentage points in Q4.