Croatia sees Q3 GDP growth of 3.9%

According to the State Statistics Bureau Croatia's gross domestic product grew by 3.9% year-on-year in the third quarter. The bureau also reported that this quarter's growth was faster than in the previous quarter.

Commenting on the latest data from the State Statistics Bureau Prime Minister Andrej Plenković noted that the numbers shows that Croatia's GDP is growing at almost four times the rate of most EU member states: “Growth in exports is encouraging, the more exports grow means that we have both goods and services, and thus healthy growth. I'm happy to say that this is the 15th quarter in a row that Croatia is seeing GDP growth.”

However, the growth is being driven primarily by consumer spending, which many fail to see as legitimate growth in production. Union leader Krešimir Sever: “This growth in spending is not because people were buying more food or energy products, it's because of the growth in prices, that's why we're seeing this.”

Meanwhile, the proposed 2025 state budget was the focus of a meeting of the Socio-Economic Council today. And while employers insisted that there is almost nothing to criticize in the proposed budget, unions warned that the constant rise in food prices could significantly reduce the planned positive effects of the budget. Council president and union leader, Krešimir Sever: “Earmarking more funds from the state budget for wage growth, higher pensions, for parental subsidies, for baby bonuses, regional development and so on, will be all for naught if this will also be consumed by price inflation. What we have in Croatia that is completely unjustified is the massive inflation in food prices, which continue to grow unabated, especially bread. And these days we are witness to yet another price inflation in that segment. So, all of this growth in wages and pensions is being consumed by precisely that inflation.”

Source: HRT