Croatian Kuna (Photo: Davor Javorovic/PIXSELL) Croatian Kuna (Photo: Davor Javorovic/PIXSELL)

The World Bank has raised its projections for growth of the Croatian economy this year to 2.9%. This is up by 0.4% from the bank's June forecast. According to the World Bank's latest report, the biggest driver of economic growth this year should continue to be consumer spending, which reflects continued growth in wages and employment, as well as citizens' borrowing.

The World Bank warns however, that the pace of growth is likely to slow over the next two years due to a downturn in consumption and investment and weaker foreign demand.

Meanwhile, according to the Global Competitiveness Index, published by the World Economic Forum, Croatia is ranked 63rd among 141 economies covered in the forum's 2019 report. This represents a jump of five places when compared to last year's report. The news was announced in Zagreb on Wednesday by the National Competitiveness Council, which noted that by improving its position by five places Croatia has achieved the biggest upward move of any country in the region.

According to the report Croatia has made the biggest breakthrough in the area of ​​macroeconomic stability, a focal point of the government of Prime Minister Andrej Plenković and his Finance Minister Zdravko Marić. In terms of macroeconomic stability Croatia ranked 43rd this year, a jump of 63 places when compared to 2018. It is also rose in the rankings in terms of infrastructure, health and the labour market. It dropped in the rankings in terms of institutions, ICT application, skills, business dynamics and innovation capacity.

The report lists positive trends in terms of Croatia’s inflation rate, its high electrification, positive trade barriers, road quality and workers' rights as being among the country’s competitive advantages.

Topping the index are Singapore, followed by the United States and Hong Kong.

Source: HRT