17:41 / 27.05.2022.

Author: Domagoj Ferenčić

Croatia sees GDP growth of seven percent on the first quarter of 2022

Finance Minister Marić

Finance Minister Marić

Foto: Robert Anic / PIXSELL

According to the State Statistics Bureau, the Croatian economy grew by seven percent in the first quarter of this year, when compared to the same period last year. When compared to the previous quarter GDP rose by 2.7%.

Deputy Prime Minister and Finance Minister Zdravko Marić said today that the seven percent growth in GDP is somewhat higher than initially forecast by the government, and is a sign of economic resilience in spite of the numerous challenges Croatia and the global economy are facing: “What is especially encouraging for all of us, is that we are seeing solid growth in both investment and consumer spending. So, all in all I think that we can be happy with the current situation, with the caveat that we still have a relatively high reliance on imports.”

Minister Marić added that given the high inflation it is important to ensure continued GDP growth as a way of protecting the living standard for those citizens with smaller incomes.

“This is very positive and quite encouraging, especially as we approach the summer tourism season. It also confirms all of our efforts to ensure that this year Croatia's economy is again strong and dynamic for the benefit of businesses and citizens alike as we continue our economic recovery,” added Prime Minister Andrej Plenković.

And while most see these data points as a source of optimism, many are also quick to remind that this growth is projected to slow down by the end of the year and that any growth in GDP and wages have already been completely wiped out by the rampant inflation.

Government says that access to the EU’s Recovery and Resilience Plan will play a crucial role in continuing economic recovery and fighting off the negative effects of rampant inflation. With that in mind, the details of specific financial instruments from Croatia's Recovery and Resilience Program to the public today. The plan is being implemented by the Croatian Bank for Reconstruction and Development, which noted today that Croatia is sixth among European Union member states in terms of the speed with which it is fulfilling conditions and drawing on money from the EU's Recovery and Resilience Plan. According to Prime Minister Plenković's economic advisor, Zvonimir Savić, Croatia should receive the first installment of the plan, totaling 700 million Euros, in June, while the second installment of 700 million Euros is expected by the end of the year. Much of the program deals with providing more favourable loans to start-ups and small and mid-sized businesses.

Source: HRT

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