Government Consumption in Croatia
Croatia's economy recorded an average growth rate of 1.9% in government consumption in the decade to 2022. This is above the Euro Area's average of 1.5%. In 2022, government consumption growth in Croatia was 2.7%.
Croatia Government Consumption Chart
Note: This chart displays Government Consumption (ann. var. %) for Croatia from 2014 to 2023.
Source: Macrobond.
Croatia Government Consumption Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Government Consumption (ann. var. %) | 2.8 | 3.5 | 3.1 | 2.7 | 6.6 |
Economic growth slows in the first quarter
GDP growth waned to 3.9% year on year in the first quarter of 2024, from 4.4% in the fourth quarter of last year. On a seasonally adjusted quarter-on-quarter basis, economic growth waned markedly to 1.0% in Q1, from the previous period's 2.0% increase.
Government spending growth slowed to 1.0% in Q1 (Q4 2023: +4.6% yoy). More positively, private consumption growth accelerated to 6.0% in Q1 compared to a 5.3% expansion in Q4, supported by lower inflation. In addition, fixed investment growth sped up to 10.8% in Q1, from the 6.0% expansion in the prior quarter. Meanwhile, the external sector detracted from the headline reading. Exports of goods and services contracted at a slower pace of 2.0% in Q1 (Q4 2023: -4.4% yoy), while imports of goods and services bounced back, growing 2.2% in Q1 (Q4 2023: -7.1% yoy), marking the highest reading since Q4 2022.
Our panelists expect the economy to expand at a slower pace in the coming quarters as investment activity loses steam. That said, over 2024 as a whole, the economy is set to register one of the fastest expansions in the Euro area, supported by stronger private spending growth and a rebound in exports.
Alen Kovac, analyst at Erste Bank, commented on the outlook: “We reiterate a strong private consumption outlook amid tight labor market conditions, especially strong wage dynamics, particularly in the public sector […] along with employment gains (expected in 1.5-2.0% band for 2024) and real wages remaining close to the double-digit region throughout most of 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 14 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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