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. %) | 3.1 | 3.4 | 2.8 | 2.2 | 7.1 |
GDP growth accelerates in the third quarter
Economy gains momentum: GDP growth accelerated to 3.9% year on year in the third quarter from 3.5% in the second quarter. On a seasonally adjusted quarter-on-quarter basis, economic growth edged down 0.8% in Q3, compared to the previous period's 1.0% growth.
Government spending and exports lead the upturn: The annual improvement was driven by stronger outturns in government spending and exports. Domestically, government spending improved to a 5.3% expansion in Q3 (Q2: +3.8% yoy). That said, household spending increased 5.5% in the third quarter, which was below the second quarter's 6.0% expansion. Moreover, fixed investment growth softened to 9.2% in Q3 from the previous quarter’s 11.7%. On the external front, exports of goods and services rose 1.5% in the third quarter, rebounding from the second quarter's 1.3% contraction and marking the strongest reading in over a year. Conversely, imports of goods and services growth waned to 4.1% in Q3 (Q2: +5.2% yoy).
Momentum to soften in 2025: Our panelists expect GDP growth to cool in Q4 and to stabilize at a level slightly below that of 2024 in 2025. A broad-based deceleration in domestic demand is set to outweigh stronger exports growth. Nonetheless, the economy will remain among the Euro area’s top performers. Weaker-than-expected Euro area demand poses a downside risk.
Panelist insight: Alen Kovac, analyst at Erste Bank, commented on the outlook for private consumption: “Fundamentals on labor market side remain supportive, yet wage growth is anticipated to moderate back to single-digit region, while employment gains are also seen softening after strong gains this year, hence disposable income growth – while remaining supportive, should lose some steam next year. Considering potentially more cautious consumers, given the increasing global uncertainty, we are expecting private consumption growth to moderate back to 3-4% region in 2025.”
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 12 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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