Commission keeps Croatia’s growth forecast above EU average

The European Commission’s autumn economic forecasts keep Croatia’s outlook unchanged, projecting economic growth above the EU average this year and next.

Croatia’s GDP is expected to remain strong, supported by solid household consumption and rising real disposable income. Growth is forecast to gradually ease from 3.2% in 2025 to 2.9% in 2026 and 2.5% in 2027. Employment is also set to expand, with the unemployment rate staying below 5%.

Inflation, however, is expected to remain elevated through 2025 and 2026 before easing to 2.2% in 2027.

The general government deficit is projected to rise to 2.8% in 2025 and remain near that level through 2027, while the debt-to-GDP ratio is expected to hold at around 56%.