Addiko Bank.jpg
Photograph: HINA / Tamino PETELINŠEK / STA / mm

Addiko Bank has recently upgraded its FY16 GDP growth forecast for Croatia by 1.0pp to 2.0%, according to an analysis the bank issued on Friday.

"Marking stronger-than-expected dynamics to date to market combined by another stellar tourist season, still decent export growth and more sustainable household consumption dynamics, we upgrade our FY16 GDP growth forecast by 1.0pp to 2.0%."

"Croatian fiscal accounts have exhibited a strong start into 2016, and we see potential for stronger than expected fiscal consolidation this
year, with the deficit below 2.5% of GDP. Given uncertainty over the new government composition, budget and financing plans for 2017 and resurgent hefty foreign debt redemptions in 2017 (~4% of GDP), and intensified ratings scrutiny, we expect Croatian bonds to face challenges," reads the analysis issued within the bank's latest publication "SEE Quarterly".

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