Spring Forecast 2018 for Croatia – Domestic demand to continue supporting growth

On the 3rd of May 2018 the European Commission has issued its Spring Economic Forecasts for the EU member states. According to the forecast for Croatia the economy remains on track to reaching its pre-crisis volume in 2019. Real GDP growth is expected to remain at 2.8% in 2018 and to moderate to 2.7% in 2019. Private consumption is expected to drive growth due to continued wage and employment growth.Goods exports are projected to progressively slow this year and next. The general government balance continuedimproving and turned into a surplus of 0.8% of GDP in 2017. This was a result of both strong revenue growth supported by recovering GDP growth, and substantial expenditure containment. The reduction of the debt ratio is expected to accelerate, with a projected ratio of 73,7% of GDP for 2018 and 69,7% in 2019.

More on the Spring Forecast available at: https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-forecasts/spring-2018-economic-forecast-expansion-continue-amid-new-risks_en