EC expects mild drop in growth outlook for Croatian economy

(Photo: Volkmar Heinz/dpa-Zentralbild/ZB/DPA/PIXSELL)

The European Commission has mildly revised down Croatia's growth outlook from an initial 3.1% percent to 2.9%in 2019.

Economy Nikola BadovinacNov. 7, 2019, 4:41 p.m.

Over the next two years the EC expects a sharp rise in investments in Croatia, as well as a record low unemployment rate and a declining public debt.

According to the latest data presented in the EC's European Economic Forecast for 2019, 2020 and 2021, domestic demand in Croatia is expected to be the main driver of economic activity as growth within the country's main trading partners wanes.

Household consumption remains strong, they say, which is being driven by growing employment, increased wages, and low inflation.

The investment growth is projected at a strong 8.8%, which contrasts strongly to the 4.1% in 2018. In 2020, the investment growth rate is projected at 7.5% and in 2021 at the rate of 7.2%.

In 2020, the European Commission anticipates Croatia's economy to grow at a rate of 2.6%, and by 2.4% in 2021. The previous document projected 2.7% growth in both 2020 and 2021.

Source: HRT