Croatia: Pace of GDP contraction eases in Q3
December 10, 2014
GDP contracted 0.5% in Q3 over the same quarter last year, according to detailed figures released by the Croatian Bureau of Statistics on 10 December. The decline was in line with the 28 November flash estimate and marked an improvement over the 0.8% contraction tallied in Q2. The print, which represented the lowest pace of contraction since Q2 last year, marked the 12th consecutive quarter of declining economic activity.
The pace of contraction eased in Q3 as domestic demand, particularly public spending and investment, shrank at a softer rate than in Q2. Private consumption declined 1.1% over the same quarter of last year (Q2: -0.6% year-on-year), and government spending fell 1.4% (Q2: -3.4% yoy). Gross fixed capital formation advanced from Q2’s 5.2% annual decline to a milder 3.6% contraction in Q3.
On the external side of the economy, exports of goods and services grew 4.1% in Q3, which represented a slowdown over the 7.8% growth recorded in Q2. Imports rose 3.2% (Q2: +2.2% yoy). As a result, the external sector’s net contribution to overall economic growth decreased from 2.0 percentage points in Q2 to 1.1 percentage points in Q3.