Croatia Economic Outlook
February 6, 2018Recent data suggests that economic activity cooled somewhat in the final quarter from the third one. In December, the unemployment rate increased for the third consecutive month, mainly due to seasonal factors, and the annual contraction in industrial production sharpened. However, retail sales expanded healthily throughout the quarter. On 12 January, Fitch Ratings upgraded Croatia’s credit rating from BB to BB+, citing the robust cyclical position and the improvement in public finances as reasons for the upgrade. In mid-January, the IMF concluded its annual Article VI consultation with Croatia. The Fund praised the country’s favorable fiscal performance and conservative prudential policies. However, it also stressed the need for the government to cut public sector wages and social benefits, as well as the need to liberalize the labor market, streamline public administration and privatize SOEs.
Croatia Economic GrowthGrowth is projected to decelerate slightly this year, as the expansion in the tourism sector moderates, restraining private consumption growth. On the other hand, growth in fixed investment should speed up thanks to accommodative financing conditions and stronger EU fund inflows. Moreover, the government’s prudent fiscal stance will maintain the debt-to-GDP ratio on a downward trend. The main downside risks stem from the Agrokor restructuring process, which could hurt banks’ balance sheets and the company’s providers, weighing on credit growth and investment. Met the why particular panelists project GDP growth of 2.8% in 2018, unchanged from last month, and 2.7% in 2019.
Croatia Economy Data
5 years of Croatia economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.09||0.0 %||Feb 20|
|Exchange Rate||6.03||-0.54 %||Feb 20|
|Stock Market||1,855||-0.48 %||Feb 20|
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Croatia Economic News
January 29, 2018
Industrial output dropped 2.5% in working-day adjusted terms from the same month last year in December, a sharper contraction from November’s 1.7% drop and marking the worst result in almost three years. December’s result was dragged down by contractions in the mining and quarrying, and manufacturing sectors.
January 23, 2018
Consumer prices dropped 0.4% in December compared to the previous month, following a flat reading in November.
January 2, 2018
Industrial output dropped 1.6% in working-day adjusted terms from the same month last year in November, strongly contrasting October’s 4.3% expansion and marking the worst result in almost three years. November’s result was dragged down by contractions in the electricity, gas, steam, and air conditioning and manufacturing sectors.
December 15, 2017
Consumer prices remained flat in November compared to the previous month, following 0.4% month-on-month growth in October.
December 1, 2017
The economy gained traction in the third quarter of 2017, supported by a surge in fixed investment and solid household spending, despite the uncertainty still surrounding the restructuring of Croatia’s largest private company, food giant Agrokor.