ZAGREB, October 25, 2018 – The Croatian National Bank (HNB) Council discussed on Wednesday the latest economic and monetary trends, as well as a report on the situation in the banking system in the first half of the year, adopting a monetary policy projection for the period from 2018 to 2021, and several other decisions from its remit, the HNB said in a statement.
Available monthly data show that real GDP continued to grow in the third quarter of 2018, but at a slower pace than in the previous quarter. Favourable trends on the labour market continued but were somewhat less intense than earlier this year. The annual inflation rate in September dropped to 1.4%, the bank said.Available monthly data show that real GDP continued to grow in the third quarter of 2018, but at a slower pace than in the previous quarter. Favourable trends on the labour market continued but were somewhat less intense than earlier this year. The annual inflation rate in September dropped to 1.4%, the bank said.
The HNB has continued to pursue an expansionary monetary policy, keeping the liquidity of the domestic financial system in September at a high level.
Lending to the non-financial business sector was as in August, while lending to households improved.
The surplus on the current and capital accounts in Q2 increased on the year.
In Q2, the general government saw a significant surplus in its budget, and the public debt to GDP ratio continued to drop.
Taking into account the latest trends, the HNB has mildly lowered its estimate of GDP growth in 2018 to 2.7%, noting that its structure has deteriorated, with the previously expected rise in personal consumption increasing on the back of good labour market trends while the previously expected growth of investments and export of goods and services went down.
