Croatia’s Government Surplus at 0.3% of GDP in 2018

Total Croatia News

ZAGREB, October 21, 2019 – Croatia recorded a consolidated general government budget surplus of 992 million kuna in 2018, which is 0.3% of GDP, which is the second year in a row that a budget surplus was generated while the public debt to Gross Domestic Product (GDP) was reduced to 74.8%, according to the revised figures released on Monday by the National Bureau of Statistics (DZS).

The report on the Excessive Deficit Procedure and general government debt to GDP released on Monday indicates a consolidated general budget surplus in 2018 of 992 million kuna or 0.3% of GDP whereas in 2017 it was 2.9 billion kuna, or 0.8% of GDP.

The latest data has been revised up from the April report when DZS reported that the consolidated general budget surplus for 2018 amounted to 758 million kuna or 0.2% of GDP.

The biggest impact on the amount of 2018 surplus was due to the further fall in the government budget balance compared with the previous year from 2.29 billion kuna to 192 million, as a result of positive economic developments, DZS’s report said.

The 2018 surplus was mostly driven by the considerably improved financial result of extrabudgetary beneficiaries and public companies and by increased tax revenues.

In 2018, taxes on production and imports totalled 76.7 billion kuna, an increase of 7.2% on the previous year.

Investments also grew, increasing by 13.36 billion kuna or 32.6% more than in 2017. The surplus is also the result of a decrease in interest rates, and interest expenses amounted to 8.89 billion kuna or 9.1% less than in 2017.

At the end of last year, consolidated general government debt was 286.1 billion kuna, or 74.8% of GDP, while in 2017 it was 285.84 billion kuna, or 78% of GDP. That is its lowest level since 2012 when it accounted for 69.4% of GDP.

More economic news can be found in the Business section.


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