GDP in Croatia
Croatia - GDP (billions of Euros)
GDP grows robustly in Q3 on strong external sector
GDP expanded a robust 15.8% in annual terms in Q3, marginally below the 16.5% growth tallied in the prior quarter, supported by strong tourist activity which buoyed the external sector.
The slowdown was due to a moderation in domestic activity. Capital spending growth decelerated markedly from the prior quarter (Q3: +7.6% yoy; Q2: +18.1% yoy) as global logistical disruptions and raw material shortages, amid pandemic-related uncertainty, likely impeded investment. Similarly, household spending rose a softer 16.0% year-on-year, following the 18.2% expansion logged in Q2. Meanwhile, government spending tumbled in Q3, falling 4.5% and marking the lowest print since Q3 2001 (Q2: +8.5% yoy).
On the external front, exports of goods and services expanded a record-breaking 48.8% in annual terms, accelerating from Q2’s robust 43.0% growth. This, coupled with a markedly slower increase in imports of goods and services (Q3: +13.1% yoy; Q2: +36.0% yoy), significantly benefited the headline reading.
Growth is expected to cool notably in the final quarter of the year, as traditionally subdued tourism activity in the winter months will weigh on the external sector, while surging numbers of Covid-19 infections from mid-October will dampen domestic activity. Next year, incoming EU funds will spur investment, which, coupled with normalizing tourism activity, will sustain growth overall.
Alen Kovac, an analyst at Erste Bank, said:
“Having in mind our recent upgrade to 8.7% for 2021, clearly robust Q3 2021 figures deliver further upside potential, suggesting a figure well into the 9+% region. Furthermore, the focus is shifting to 2022, with the risks becoming more pronounced with increasing pandemic-related uncertainties and the inflation profile weighing on recovery prospects. We trimmed our 2022 call to 4.8%, reflecting less tourism 'normalization' potential after a strong 2021, while the above-mentioned factors mostly remain downside risks to the call.”
FocusEconomics panelists forecast GDP to expand 4.5% in 2022, which is down 0.1 percentage points from last month’s estimate. For 2023, our panel sees GDP growth at 3.8%.
Croatia - GDP (EUR bn) Data
|GDP (EUR bn)||45.0||46.8||49.3||51.9||53.9|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.67||0.0 %||Dec 31|
|Exchange Rate||6.64||-0.54 %||Jan 01|
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November 26, 2021
GDP expanded a robust 15.8% in annual terms in Q3, marginally below the 16.5% growth tallied in the prior quarter, supported by strong tourist activity which buoyed the external sector. The slowdown was due to a moderation in domestic activity.
November 16, 2021
Consumer prices rose 0.94% in October over the previous month, coming in marginally below September's 0.95% rise which had marked a six-month high.
October 15, 2021
Consumer prices rose 0.95% in September over the previous month, picking up from August's 0.19% increase.
September 30, 2021
Industrial production expanded at a sharper rate of 5.2% in annual terms in August, from 3.9% in July.
September 17, 2021
Consumer prices rose 0.19% over the previous month in August, unchanged from July's reading.