Croatian economic growth slows to 1.7 percent

Thanks to growth in personal consumption, investments and exports, the Croatian economy grew in the second quarter of this year for the 22nd consecutive quarter, but at a slower pace than in the previous quarter.

The Croatian Bureau of Statistics (CBS) published its first estimate on Thursday, according to which the gross domestic product (GDP) grew by 1.7 percent in real terms in the second quarter compared to the same period last year.

This is the 22nd consecutive quarter that the economy has grown, but at a slower pace than in the previous quarter, when growth was 2.2 percent.

The annual GDP growth of 1.7 percent is the slowest growth since the last quarter of 2020, when the economy collapsed under the impact of the corona crisis.

Consumption and investment growth

According to CBS data, household consumption, which is the largest component of GDP, grew by 0.5 percent annually in the second quarter, significantly slower than the 2.6 percent in the previous quarter.

Gross fixed capital formation, on the other hand, grew by 1.7 percent, slower than the 2.5 percent in the previous quarter.

Government consumption grew by 2 percent, after strengthening by 0.7 percent in the previous quarter.

Exports of goods and services, on the other hand, grew by 3.0 percent annually, after falling by 1.6 percent in the previous quarter.

Exports of goods grew by 5.2 percent, and services by 1.0 percent.

Imports of goods and services, on the other hand, increased by 3.4 percent, while they fell by 0.3 percent in the previous quarter.

Imports of goods increased by 2.5 percent, and services by 7.8 percent.

Annual growth faster than the EU average

According to seasonally adjusted data from the Croatian Bureau of Statistics, the economy grew by 0.4 percent quarterly in the second quarter, and 1.7 percent annually.

Thus, the growth of the domestic economy on an annual basis is still significantly faster than the average in the European Union (EU).

Eurostat recently announced that in the second quarter, the EU economy, according to seasonally adjusted data, grew by 0.5 percent compared to the previous quarter, while it grew by 1.2 percent annually.

The Eurozone economy, on the other hand, grew by 0.4 percent quarterly in that quarter, and 1.0 percent annually.

Source: HRT