18:45 / 30.09.2021.

Author: Nikola Badovinac

GDP growth could reach 8.5%

GDP growth

GDP growth

Foto: Pixabay / Pixabay

Croatia expects to see a high GDP growth rate for the third quarter this year, while the rate for the whole of 2021 might reach 8.5 percent, which is above the latest projections, said Croatian National Bank Governor Boris Vujčić said on Thursday. 

"The optimism is based on the strong growth of commodity exports and the rise in tourism revenues, which reached 90 percent of those generated in the record-breaking 2019 season," Vujčić said at a two-day conference in the northern Adriatic resort town of Opatija, organised by the Croatian Banking Association, the National Bank, and the Croatian Financial Services Supervisory Agency.

The governor added that the use of EU funds would have a positive impact on GDP growth in the medium term.

"We expect a further rise in employment in 2022, given the growing demand for labour," said Vujčić. Croatia had seen a marked rise in the import of foreign labour since 2019, with a stagnation observed during the pandemic. The figure often quoted in the media is 35,000, but Vujčić believes that businesses will need twice as many foreign workers than expected.

Surplus liquidity in the financial system is historically high, while financing costs continue to decrease, as a result, a further fall in interest rates on loans to companies, households and government can be expected.

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