Due to the coronavirus measures Croatia has registered two consecutive quarters of economic contraction, the textbook definition of a recession.
According to the latest data Croatia saw a 10% year-on-year drop in GDP in the third quarter. The country had already registered a 15.1% drop in GDP in the second quarter. Finance Minister Zdravko Marić commented on how this will affect the annual GDP: "But we do not see the possibility of anything even close to what we saw in the second quarter. Whatever the case, we stand by our overall projection of 8%."
Meanwhile, representatives from employers’ associations, the service industry and various chambers, met with the relevant ministers and their aids at the Labour Ministry today. They are calling for job preservation measures to be expanded, compensation for the lockdown and for access to loans so as to maintain liquidity.
"Regardless of the fact that we had a very open and constructive talk, it is clear that a long working weekend awaits us if we want to be able to talk about concrete measures for the sectors most at risk at the beginning of next week," said Damir Žorić, the Director General of the Croatian Employers Association.
"Right now, it is important that we saw the various models being advocated for by employers’ associations, and on the basis of that we will see what our fiscal limitations are. I have to admit that employers showed a lot of understanding four our fiscal limitations and the limitations of the state budget," concluded Labour and Pension System Minister Josip Aladrović.
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