ZAGREB, November 6, 2018 – Finance Minister Zdravko Marić expects the new GDP growth forecast for Croatia, which the European Commission is scheduled to release on Thursday, to be similar to those issued by other international financial institutions and analysts.
“I generally don’t like to speak in advance about forecasts that have not yet been published, but according to everything we hear from other international institutions, relevant analysts in the country and abroad, who all more or less gave the same projections, the growth rate should be slightly below 3%,” Marić said on Tuesday in Brussels where he is taking part in a two-day meeting of EU finance ministers which started on Monday.
The Commission publishes a full set of macroeconomic forecasts for the EU and its member states in spring (May) and autumn (November). It is expected to release its autumn forecast on Thursday.
According to the latest EC projections, Croatia’s GDP should go up 2.6% in 2018 and 2.5% in 2019.
The European Bank for Reconstruction and Development (EBRD) last week affirmed its forecast of Croatia’s 2018 economic growth at 2.7%. The lender also affirmed Croatia’s 2019 growth forecast at 2.5%.
“Following a long-lasting crisis and recession, I would say that the present growth rates are good and they are based on healthier foundations than those before the economic crisis. They, however, are not growth rates we should be happy with in the medium and long term. We need to strive to increasing the growth potential and then overall growth rates will be better too, the way we all want them to be, which will help boost employment, the standard of living and earnings,” Marić said.
Asked about the effects that state guarantees, issued for the troubled Uljanik shipyard, would have on the EC’s economic forecast, Marić said this was a one-off effect which is not negligible but it will not jeopardise the stability of public finances. He reiterated that he was talking about 4.3 billion kuna of enforced guarantees.
Marić is currently in Brussels where he is taking part in the Economic and Financial Affairs Council (ECOFIN) meeting. Ministers will exchange views on the digital services tax and discuss the progress achieved in the negotiations so far.
To read more about Croatia’s economy, click here.
