GDP Grows by 2.8 Percent in Second Quarter

Total Croatia News

Surprisingly high GDP growth in the second quarter of the year.

In the second quarter of this year, Croatian economy grew by 2.8 percent compared to the same period last year, which is slightly faster than in the previous quarter and higher than expected, according to the first assessment announced by the Central Bureau of Statistics on Wednesday, reports on August 31, 2016.

The data are better than expected. Eight macroeconomists who participated in a survey in recent days estimated on average that the economy grew by 2.3 percent year-on-year. This is the seventh quarter in a row that GDP is growing. In the first quarter of the year, the economy grew by 2.7 percent.

Finance Minister Zdravko Marić said that the GDP growth was in line with expectations of analysts and that the government’s expectations for the second quarter were also fulfilled. “In addition to a stable and slightly slower growth of exports in the second quarter, we have very good results in personal consumption and investments”, said Marić. He added that investments grew by more than six percent in the second quarter.

The Central Bureau of Statistics announced that the largest contribution to the increase was recorded in the area of exports of goods and services, which grew by 4.1 percent in that period. The contribution of domestic demand was also positive. Other important GDP components also grew: government spending increased by 2.6 percent, while gross fixed capital investments rose by 6.3 percent. However, the contribution of net external demand was negative.

Asked for his expectations for the second half of the year, Finance Minister Marić said that growth in the second quarter and the tourist season have raised the government’s projections up to 2.5 percent. “You know that originally we expected the growth of two percent. Many people challenged and criticized that, but we said that it was a realistic assumption. Now we can clearly see that the economy this year will perform even better”, concluded the Minister.


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