Croatia Economic Outlook
July 3, 2018Available data points to the continued strength of domestic demand in Q2, which had underpinned the solid economic expansion logged in Q1. Healthy retail sales growth in April, supported by a tightening labor market and robust gains in real earnings, and record-high consumer optimism in May suggest private consumption remained buoyant in Q2, despite the recent pick-up in inflation. Furthermore, the all-important tourism industry—which accounts for nearly 11% of exports—remains vibrant, with tourist arrivals up by double-digits year-on-year in January–April, hinting at a new record-breaking season this year. Meanwhile, the creditors of the highly-indebted conglomerate Agrokor reached a draft debt settlement agreement on 19 June, whereby the biggest single creditor, Russia’s Sberbank, would become the largest shareholder with a nearly 11% equity stake. Creditors will vote on the deal on 4 July; a two-thirds majority, which is widely expected, is required for the vote to become valid.
Croatia Economic GrowthEconomic activity should remain strong this year, buttressed by a dynamic tourism industry, which is a key source of employment and export revenues; and robust consumer spending, supported by the steady growth of real earnings and falling unemployment. Absorption capacity of EU funds is also set to improve, boding well for capital spending. Although a disorderly restructuring of Agrokor is unlikely, it remains a risk to the outlook. Met the why particular panelists project GDP growth of 2.7% in 2018, unchanged from last month’s forecast, and 2.7% again in 2019.
Croatia Economy Data
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|Bond Yield||2.18||0.0 %||Jul 13|
|Exchange Rate||6.33||-0.54 %||Jul 13|
|Stock Market||1,808||-0.48 %||Jul 13|
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Croatia Economic News
July 17, 2018
Consumer prices remained unchanged from the previous month in June, contrasting the 0.4% rise recorded in May.
June 29, 2018
Industrial output fell 0.7% in working-day adjusted terms from the same month last year in May, contracting for the third consecutive month, albeit at a softer pace than in April, when it fell 1.3%. May’s result was driven by a sharper annual contraction in the mining and quarrying sector compared to April.
June 15, 2018
Consumer prices rose 0.4% from the previous month in May, slightly below the 0.7% rise recorded in April.
June 1, 2018
The economy grew at a healthy pace in the first quarter of the year as domestic demand expanded at the fastest clip since the third quarter of 2008.
May 29, 2018
Industrial output fell 1.3% in working-day adjusted terms from the same month last year in April, contracting for the second consecutive month, albeit at a softer pace than in March, when it fell 1.7%.