The European Bank for Reconstruction and Development (EBRD) has revised upward its growth projection for the Croatian economy for this year to 0.9% and affirmed its forecast of a 0.5% growth for next year.
In its previous report, released in May, EBRD had forecast Croatian economic growth in 2015 at 0.5%. According to EBRD, the Croatian economy saw a cumulative 12% contraction between 2009 and 2014, the second largest in the EU after Greece. The prospected return to growth is supported by a better-than-expected tourist season, stronger external demand and lower oil prices.
However, EBRD expects investments to remain weak, pointing to remaining structural weaknesses. Growth in 2016 is forecast at a mere 0.5% also due to continuing pressure for fiscal adjustment.
According to Eurostat, the EU’s statistical office, Croatia has maintained its position among those European Union countries that recorded a two-digit export growth in the first eight months of the year.
Croatia's commodity exports in January-August 2015 increased by 11% compared with the same period in 2014, which was one percentage point less than in the first seven months of the year.
Croatia recorded the same growth rate as the United Kingdom; only Cyprus and Ireland scored higher, 25% and 21% respectively. Croatia also saw a 16% increase in exports of goods to other EU countries, and 3% to third countries.
Contact:
Jelena Bilušić
Relationship Manager
Global Securities Services, Croatia
jelena.bilusic@unicreditgroup.zaba.hr