Croatian economy sees second quarter growth of 7.7%

According to the latest data from the State Statistics Bureau the Croatian economy is experiencing a strong recovery from the corona-crisis, which ensued following the lockdown measures. Almost every segment of the economy registered growth in the second quarter, from consumer spending to the export of goods and services, which is up by more than forty percent on an annual basis.

In the second quarter the Croatian economy grew by 7.7% when compared to the same period last year, which is twice as high as the European Union average. The only EU member state that currently has higher economic growth is Slovenia. Prime Minister Andrej Plenković said today that he expects that by the end of the year Croatia will have a higher rate of growth than initially forecast by government and international institutions: “The average rate of growth in the EU in the second quarter was four percent, so our growth is almost 100% bigger. From that aspect we can definitely be happy. Given the fantastic tourist season, which has seen growth of more than 180% when compared to the second quarter of 2021, we can expect the third quarter to be very good. This will help us confront the economic crisis we are all facing.”

And while analysts had forecast these good results, they also warned that given the current geopolitical situation, a slowdown in economic activity is expected in the fall and winter. The Chief Economist of the Croatian Employers' Association, Iva Tomić: “Looking at only these data points we could say that we are living in a fantastic economic situation. However, on the other hand we know that price pressure is hitting us from all sides, and that it would be better to consider what awaits us in the fall and winter. Because that's where certain problems could arise.”

The Croatian Chamber of Economy also expects an economic slow-down in the fall and winter, in spite of this they still feel that Croatia's GDP could grow by more than three and a half percent on an annual basis this year. And while inflation is on everyone's mind, financial analysts Hrvoje Serdarušić says the real problem is the price of electricity: “In part due to the drought, the EU's geopolitics and the absolutely misplaced policies of the strongest European economy, Germany, I am somewhat afraid of an unavoidable recession in Europe.”

Government is currently preparing new measures to support the economy, the details of those measures should be made public over the next ten days.

Source: HRT