Croatia: GDP contracts at softer pace in Q3
December 20, 2012
In the third quarter of 2012, GDP contracted 1.9% over the same quarter the year before, according to detailed figures released by the Croatian Bureau of Statistics on 20 December. The result marked an improvement on the 2.2% contraction tallied in the previous quarter and was in line with the 30 November flash estimate.
The external sector drove the improvement witnessed in the third quarter, whereas domestic demand remained weak. Private consumption fell 3.5% over the same quarter the year before, slightly exceeding the 3.4% decline observed in the previous quarter. Moreover, government spending contracted at a faster pace (Q2 2012: -0.2% year-on-year; Q3: -0.4% yoy). On the other hand, gross fixed capital formation contracted 4.3% year-on-year, which was up from the 5.9% drop seen in Q2.
Exports of goods and services fell 0.1% in the third quarter, an improvement from the 1.8% drop seen in Q2, while imports contracted at a 3.3% pace, mirroring the result recorded in the second quarter. As a result, the external sector's net contribution to overall economic growth stepped up from 0.7 percentage points in the second quarter to 1.2 percentage points in the third.