Croatia: Q2 GDP records fastest growth in almost seven years
September 4, 2015
GDP expanded a solid 1.2% in Q2 2015 over the same quarter of the previous year, according to detailed figures released by the Croatian Bureau of Statistics on 4 September. The reading was in line with the 28 August flash estimate and was above the 0.5% growth tallied in Q1 2015. The print represented the third consecutive expansion in annual terms and the best result since September 2008.
The expansion in Q2 reflected that an increased external sector contribution more than compensated for a deceleration in domestic demand. Private consumption increased 0.6% over the same quarter of the previous year (Q1: +0.3% year-on-year), and government spending grew 0.4% (Q1: +0.6% yoy). Total investment contracted 1.7%, contrasting Q1’s 0.1% annual increase.
On the external side of the economy, exports of goods and services grew a substantial 10.2% in Q2, which was above the 7.2% growth recorded in Q1. Imports grew 6.9% (Q1: +5.7% yoy). As a result, the external sector’s net contribution to overall economic growth improved from a flat reading in Q1 to plus 1.0 percentage points in Q2.
Author: Eric Denis , Economist