19:19 / 29.04.2021.

Author: Domagoj Ferenčić

Convergence Program: GDP growth 5.2% this year, 6.6% in 2022

Deputy PM and Finance Minister Zdravko Marić (Photo: Patrik Macek/PIXSELL)

Deputy PM and Finance Minister Zdravko Marić (Photo: Patrik Macek/PIXSELL)

Foto: - / Pixsell

The Croatian Government expects GDP growth of 5.2% in 2021, which is 0.3% more than its last estimate, while next year the growth rate is expected to accelerate to 6.6%.

At Thursday’s cabinet session the Croatian Government adopted its Convergence Program for the 2022-2024 period. The Convergence Program is a regular document adopted within the European Semester in dialogue with European institutions.

In the convergence program, government has raised the economic growth rate for this year to 5.2%: "Our revised projection for economic growth this year stands at 5.2% as compared to our original projection of 5%, on the basis of which we drafted this year's budget, or better said, 4.9%, which is the most recent relevant estimate for this year. This means that the effect of the National Recovery and Resilience Plan for this year is roughly 0.3%," said Deputy Prime Minister and Finance Minister Zdravko Marić.

He went on to note that in 2022, the rate of GDP growth is expected to accelerate to 6.6% and then 4.1% in 2023. In 2024 the convergence program foresees a GDP growth rate of 3.4%.

Marić added that the 2021 budget deficit is at 3.8%, but noted that this will fall in the coming years: “The Convergence Program also corrects the general government deficit target - from 2.9% of GDP, as planned in the original 2021 budget, to 3.8% of GDP. However, as early as next year the planned deficit is within the Maastricht or Convergence criteria, down to 2.6% of GDP, followed by 1.9% in 2023 and 1.5% in 2024,” the Finance Minister said, adding that by doing so, Croatia will protect its status in terms of its relations with European institutions and its bid to join the Euro Zone.

Source: HRT

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