Government Consumption in Croatia
The economy of Croatia recorded an average growth rate of 2.8% in government consumption in the decade to 2024. In 2024, government consumption growth was 7.0%.
Croatia Government Consumption Chart
Note: This chart displays Government Consumption (ann. var. %) for Croatia from 2024 to 2022.
Source: Macrobond.
Croatia Government Consumption Data
2020 | 2021 | 2022 | 2023 | 2024 | |
---|---|---|---|---|---|
Government Consumption (ann. var. %) | 3.4 | 2.8 | 2.2 | 6.6 | 7.3 |
GDP growth improves in the second quarter
Economic growth strengthens in Q2: GDP growth accelerated to 3.4% year on year in the second quarter, from 2.9% in the first quarter, remaining one of the fastest in the Euro area and beating market expectations. On a quarter-on-quarter seasonally adjusted basis, economic growth accelerated to 1.2% in Q2, up from 0.4% in Q1, marking the best result since Q4 2023.
Households and investors drive the improvement: Private consumption increased 4.0% year on year in the second quarter, up from the first quarter's 1.7% expansion, supported by softer price pressures, sturdier wage growth and a lower unemployment rate. Moreover, fixed investment growth sped up to 5.2% in Q2, following the 4.5% expansion in the previous quarter, likely supported by the ongoing ECB monetary policy easing cycle. Less positively, government consumption growth was the slowest since Q1 2025, expanding 2.4% (Q1: +5.8% yoy). On the external front, exports of goods and services growth softened to 1.6% in Q2 (Q1: +6.0% yoy), amid heightened global trade frictions. Meanwhile, imports of goods and services decelerated to 3.3% in Q2 (Q1: +8.8% yoy), marking the worst reading since Q1 2024.
Momentum to moderate in H2: Our panelists expect the economy to lose some steam in the coming quarters and in 2025 as a whole vs 2024, as domestic demand cools due to a high base effect and slowing wage growth. Still, momentum will remain upbeat and the economy will once again be among the fastest-growing in the Euro area, supported by healthy activity in the tourism sector. Slower-than-anticipated absorption of EU funds and softer-than-expected EU demand are downside risks.
Panelist insight: Analysts at the EIU commented on the outlook: “Real GDP growth is forecast to moderate in 2025 to a still-firm 3% (well above a projected EU average of 1.3%). Domestic demand will remain the driving force—supported by solid real income growth, lower interest rates, mild fiscal stimulus and rising capital investment—but not to the same extent as in 2024.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Croatian government consumption projections for the next ten years from a panel of 13 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable government consumption forecast available for Croatian government consumption.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Croatian government consumption projections.
Want to get access to the full dataset of Croatian government consumption forecasts? Send an email to info@focus-economics.com.
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