ZAGREB, May 29, 2019 – In the first three months of this year, the Croatian economy grew 3.9% on the year, which is a record high growth since late 2007.
The national statistical office (DZS) on Wednesday released its preliminary estimate under which GDP in Q1 grew 3.9% from the same period last year, and household consumption and investments are perceived as the biggest contributors to this high rise.
Q1 2019 was the 19th consecutive quarter to see GDP grow and faster than in the previous quarter, when the economy grew 2.3% on the year.
The Q1 growth is on the back of household consumption of 4.4% on the year, as against 3.9% in the previous quarter. State consumption increased to 3.1% from 2.3% in the previous quarter.
Gross fixed capital formation jumped by 11.5% on the year, while in Q4 2018 it rose 6.1%. The export of goods and services increased 4.6% in Q1 2019 on the year, whereas imports went up 7.7%.
According to seasonally adjusted data, GDP in the first quarter of 2019 grew 1.8% from the previous quarter, while in relation to the first quarter of 2018 it grew 3.9%.
This rise is higher than the average growth in the European Union (1.5% year on year and 0.5% quarter on quarter).
Economy Minister Darko Horvat said on Wednesday, commenting on the 3.9% annual GDP growth in Q1, that Croatia’s economy was on the right track and that it would be good if this rate was a stage towards the desired growth of 5%.
Responding to questions from the press, he said neither he nor the other ministers were content with a 2.5% growth. “If this number that’s happening is a passing or interim phase to the 5% economic growth I desire, then we’re on the right track,” he said, adding that “this is slowly going towards 5%”.
GDP in Q1 grew 3.9% from the same period last year, and household consumption and investments were perceived as the biggest contributors to the fastest rise since the end of 2007.
The Croatian Chamber of Commerce (HGK) said the Q1 growth was markedly higher than expected thanks to a relatively dynamic growth of commodity exports and an unexpectedly high growth of domestic demand.
Given that the European Commission’s spring forecast predicts a 2.6% growth for Croatia this year, the same as in 2018, the growth reported by the national statistical office in its first forecasts for Q1 is markedly higher than expected.
More news about economic growth can be found in the Business section.