(Photo: Igor Soban/PIXSELL) (Photo: Igor Soban/PIXSELL)

At the same time, the latest data, gathered using the Coincident Economic Index of the Institute of Economics, Zagreb (CEIZ) attributed the growth mostly to increased state budget income from VAT revenues, higher retail trade volume in the lead up to Christmas, and more overnight stays from tourists. The index growth would have been even higher, they say, had there not been a fourth consecutive month-on-month drop in industrial production in October.

The index, a monthly composite business cycle indicator, provides up-to-date information on the current business cycle condition that incorporates simultaneous value changes, therefore indicating the present state of the economy.

The Economic Institute of Zagreb says the country can expect the real GDP growth rate to amount to 2.9 percent in the fourth quarter of 2018 compared to the same period of the previous year - a somewhat higher annual GDP growth rate compared to the 2.8 percent GDP growth rate recorded in the third quarter of 2018. A more accurate estimate of the real GDP growth rate in the last quarter of 2018, they concluded, would become available when the final data for November and December are calculated.

Source: HRT and The Institute of Economics, Zagreb