Croatian GDP expected to drop by 8% this year (Photo illustration: HRT) Croatian GDP expected to drop by 8% this year (Photo illustration: HRT)

By the end of this year, the GDP is expected to drop by 8%. For next year, the Government's projection is positive - growth of 5% is expected, and the GDP should continue to grow during 2022 and 2023 by more than 3% per year. Public debt this year will be 86% of the GDP and the deficit will be 6.7%.

“For next year, we project a deficit of 2.9% of the GDP, then 2.1% and then 1.6%, and accordingly a reduction in public debt, which this year will be increased once to 86%, by an average of 2 percentage points per year,” said Finance Minister Zdravko Marić.

“I believe that very soon we will return to the level of responsible management of public finances, and that means that simple trend - to reduce public debt, achieve a budget surplus and keep the investment credit rating. From these three points, implementing our plan, I believe that we will achieve the goals of increasing employment and raising wages and raising standards in general,” said Prime Minister Andrej Plenković at the Government cabinet session.

Source: HRT