IMF (Photo: HRT) IMF (Photo: HRT)

The IMF has raised its growth projections for the Croatian economy to 3% this year, which is up by 0.4% from its April forecast. The growth projection for 2020 was raised by 0.2% to 2.7%.

This means that Croatia will almost double the growth projections for emerging and developing Eurozone economies - within which the IMF also includes Russia, Turkey, Poland, Romania, Ukraine, Hungary, Belarus, Bulgaria and Serbia – which the IMF estimates will grow at 1.8% in 2019. This will increase in 2020 to 2.5%.

The main reason for this is the stagnation of the Turkish economy this year, which according to IMF estimates will offset the high growth rates projected for Hungary (4.6%) and Poland and Romania (4%).

When compared to the remaining Eurozone economies, the gap is even wider. According to the IMF projections, economic activity in the Euro Area will grow by 1.2% this year and 1.4% in 2020.

The IMF also confirmed an unemployment rate for Croatia in 2019 of 9%. It expects this to slide to 8% in 2020. Inflation is expected to drop by roughly half a percentage point in both 2019 and 2020.

Source: HRT