The Croatian National Bank (HNB) has raised the estimate of economic growth in this year from 1.8 to 2.3%, while expecting an even higher 2.5% in the next
In December of last year the national bank estimated the economy to grow at a 1.8% rate, Tportal.hr reported on July 13, 2016.
“In discussing economic movement, the HNB council concluded the Croatian economy continues to recover in 2016, with an expected growth rate of 2.3%,” a statement said after a session where the newest economic and financial trends were considered and a monetary policy projection adopted for the period until 2019.
HNB expects the largest contribution to economic growth to come from international demand, but also from a rise of all elements of domestic demand. The growth of personal spending might be higher than last year, due to a faster growth of employment and gross salaries.
“Along with keeping a stable conversion rate, HNB will continue to support an expansive monetary policy. Such an orientation aids favourable conditions for financing of all domestic sectors, with a slight recovery in domestic loans,” the statement said.
“Structural weaknesses in the form of a relatively high public and foreign debt still remain a threat to financial stability, especially in the case of significant growth of interest rates on the international market,” HNB messaged.
