GDP: Croatian economy grew by 2.8 percent last year

The Croatian economy grew by 4.3 percent in the fourth quarter of last year, and in the whole of last year it grew by 2.8 percent, according to first estimates of the Croatian Bureau of Statistics. 

Thanks to the growth of consumption and investments, the Croatian economy grew in the fourth quarter of last year, for the 12th quarter in a row. Household consumption, which is the largest component of GDP, increased in the fourth quarter by 5.3 percent compared to the same period a year earlier, while gross investments in fixed capital increased by 6.0 percent on an annual basis. Government spending also increased, by 0.2 percent. On the other hand, the export of goods and services dropped in the fourth quarter of last year by 4.4 percent at the annual level, less than the drop in the previous quarter.

Prime Minister Andrej Plenković is satisfied with the GDP growth we achieved.

“Our growth of 2.8 percent is five times higher than the average in the European Union and Eurozone. With such growth, in 2023 Croatia will reach more than 75 percent of the average development of the European Union,” said Plenković.

The government expects a continuation of good trends this year as well.

“In 2024 we expect a positive growth rate; also 2.8 percent according to our projections, and according to projections, that rate will be three times higher than the average in the European Union.,” said Minister of Finance Marko Primorac.

The Croatian Employers Association points out that in the last quarter of last year, Croatia achieved GDP growth above expectations. This growth, they say, is driven above all by a strong growth in salaries and wages of employees, which employers insist on, as well as growth in employment. However, they add that, unfortunately, a real decline in export of goods continues, although at a milder rate than in previous quarters.

“What is important for the growth structure is that we see a continuation of a real drop in export of goods, which is the only thing that sort of ensures a mid-term prosperity in terms of growth,” said Hrvoje Stojić, the Chief Economist of at the Croatian Employers Association.

“GDP growth is good news, but the issue of sustainability and quality of growth remains,” warned economic expert Mladen Vedriš commenting on what we can do to create conditions for sustainable economic growth.

“Better quality investments, investing into new technology and employing people in competitive branches. On one side the drop in export of goods is connected to the recession among our main trade partners, while the other part is related to technology and what we produce that can be competitively and attractively sold on foreign markets. So from the aspect of evaluating the current state, it is good. What we need to do is demanding and in good times it is good to make moves,” said Vedriš.

Source: HRT