IMF: Croatian Economy to Grow 2.7% This Year

Lauren Simmonds

croatian economy

October the 11th, 2023 – The Croatian economy is set to grow by 2.7% this year according to estimates made by the International Monetary Fund (IMF).

As Poslovni Dnevnik writes, the Croatian economy will grow by 2.7 percent this year, this is significantly stronger growth than the Eurozone average, according to the regular autumn forecasts of the International Monetary Fund (IMF) on Tuesday.

Back in June this year, in regular consultations based on Article IV, the IMF forecast a 2.4 percent growth in activity this year for the Croatian economy. In the regular spring forecasts for the world economy done back in April, they calculated that this activity should increase by 1.7 percent.

2024’s predictions for the Croatian economy have exceeded initial forecasts

This new estimate is largely in line with last autumn’s calculations. Looking forward to 2024, according to their new forecasts, the Croatian economy should grow by 2.6 percent, 0.3 percentage points stronger than the initial forecast predicted back in April this year.

The IMF also raised the estimate of this year’s level of inflation, from 7.5 percent forecast back in June to 8.6 percent. Looking forward to next year, prices should rise at a rate of 4.2 percent. In April, they predicted that they would grow by 3.6 percent.

On the other hand, they significantly eased the estimate of the deficit on the current account of the balance of payments this year, to 0.2 percent. In the next year, according to their latest calculations, that sum should amount to 0.4 percent.

The April forecasts showed a deficit of 1.8 percent in both years. They slightly lowered the estimates of the unemployment rate in this year and next, by 0.1 percentage point each. These new calculations show that it should stand at 6.3 percent this year, and 5.9 percent next year.

The state of things in the Eurozone

Looking outside of the Croatian economy and onto that of the wider Eurozone, things should grow by only 0.7 percent this year, the IMF calculated. This means that they have now lowered their forecast from the July summer report by 0.2 percentage points.

In 2024, according to their new calculations, activity in the Eurozone should increase by 1.2 percent, 0.3 percentage points lower than the their previous summer estimates showed.


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