GDP growth slows on an annual basis in Q3

According to Eurostat Croatia's GDP per capita in 2023 was €29 000, which is below the EU average of €38 100. Croatia's total GDP accounted for 0.5% of the EU's total GDP in 2023. However, the agencies more recent forecasts suggest GDP growth will slow to 3.2% in 2025 but remain solid, supported by consumption and employment.

Speaking at Thursday's cabinet session, Prime Minister Andrej Plenković commented on the initial estimates from the State Statistics Bureau, by which GDP growth came in at 2.3% on an annual basis in the third quarter. This is down from 3.6% in the second quarter. Leading the growth are consumer spending, investment and exports: "This is an expected mild slowing in growth when compared to the same quarter in the previous year. However, this is the 19th consecutive quarter in which we are seeing a positive trend in the GDP. Croatia is one of only five European Union member states that has seen this continuous GDP growth since the beginning of 2021. We are joined by Belgium, Bulgaria, Cyprus and Romania."

Driving the growth according to the bureau is consumer spending, investment and exports. In the third quarter consumer spending rose by 1.9% year-on-year, investments jumped by 7.5%, while exports rose by 4.1%.

Meanwhile, according to Eurostat’s forecasts, Croatia’s GDP growth is expected to come in at 3.2% this year. This is down from 3.8% in 2024. Eurostat says Croatia’s GDP will continue to be driven by robust household consumption and employment. The agency also notes that Croatia’s General Government Debt, which came in at 57.6% of GDP in 2024, is expected to drop to 56.3% of GDP in 2025.

Source: HRT