GDP in Croatia
Croatia - GDP
GDP growth slows considerably in Q4 on weaker fixed investment and exports
The economy lost considerable steam in the fourth quarter of 2017, restrained by a softer increase in exports and weaker fixed investment growth, which was likely held back by the restructuring of Croatia’s largest private company, food giant Agrokor. Year-on-year economic growth was 2.0% in Q4 (Q3 +3.3% year-on-year), according to preliminary estimates released by the Statistical Institute on 28 February. Q4’s result brought full-year growth for 2017 to 2.8%, below the 3.2% growth recorded in 2016.
Fixed investment expanded a meagre 1.7% in Q4, half of Q3’s 3.4% growth. The ongoing debt restructuring of Agrokor, with spillovers on the food giant’s providers and the banking system, likely discouraged investment decisions. However, private consumption grew a solid 3.4% in Q4 compared to the same quarter of the previous year (Q3: +3.7% yoy), again supported by strong tourist inflows and rising wages. Moreover, government consumption growth accelerated in annual terms to 2.6% in Q4 (Q3: +2.3% yoy).
On the external front, growth in exports of goods and services came in at 3.6% in Q4, a notable slowdown from Q3’s 5.7% increase. The moderation was mainly due to a deceleration in exports of goods growth. Growth in exports of services also slowed, despite the record-high tourist season, but to a lesser extent. Similarly, the rate of expansion of imports lost strength in Q4, coming in at 6.0% (Q3: +9.5% yoy), dragged down by softer growth in fixed investment.
FocusEconomics panelists expect GDP to rise 2.7% in 2018, which is unchanged from last month’s estimate. In 2019, the panel expects economic growth of 2.6%.
Croatia - GDP Data
|Economic Growth (GDP, annual variation in %)||-2.2||-1.1||-0.5||2.2||2.9|
5 years of economic forecasts for more than 30 economic indicators.
Croatia GDP Chart
Source: Central Bureau of Statistics and FocusEconomics calculations.
|Bond Yield||2.26||0.0 %||Mar 22|
|Exchange Rate||6.05||-0.54 %||Mar 22|
|Stock Market||1,841||-0.48 %||Mar 22|
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March 22, 2018
Consumer prices dropped 0.1% in February compared to the previous month, following a sharper 0.2% fall in January.
March 13, 2018
Industrial output declined 0.4% in working-day adjusted terms from the same month last year in January, a softer contraction from December’s 2.4% drop, which marked the worst result in almost three years. January’s result was dragged down a sharp contraction in production in the electricity, gas, steam and air conditioning sector, while the production in the mining and quarrying, and manufacturing sectors rebounded from the previous month.
February 28, 2018
The economy lost considerable steam in the fourth quarter of 2017, restrained by a softer increase in exports and weaker fixed investment growth, which was likely held back by the restructuring of Croatia’s largest private company, food giant Agrokor.
February 27, 2018
Consumer prices dropped 0.2% in January compared to the previous month, following a sharper 0.4% fall in December.
January 29, 2018
Industrial output dropped 2.5% in working-day adjusted terms from the same month last year in December, a sharper contraction from November’s 1.7% drop and marking the worst result in almost three years. December’s result was dragged down by contractions in the mining and quarrying, and manufacturing sectors.