world-economic-growth-ekonomski, financijski rast - novac.jpg
Photograph: Freeimages.com/Dominik Gwarek

Croatia's Gross Domestic Product (GDP)  in the third quarter of 2015 is likely to rise by over 2%, on the back of stronger consumption, exports and investments, according to forecasts made by macroeconomic analysts, and the Q3 GDP growth rate will be thus the highest since Q2 2008, the last pre-recession year.

The Croatian statistical office (DZS) is expected to publish next week its preliminary data on the GDP growth in Q3 2015, and the eight analysts covered by a survey conducted by Hina, have projected the rise of 2.2% compared to the corresponding quarter in 2014. The lowest projection is +1.6% and the highest is +3%.

If these projections prove to be correct, Croatia will have a positive growth for four straight quarters, with the latest quarter seeing the fastest growth, after the Q2 2015 saw a growth of +1.2% year-on-year.

Also, the projected growth rate of 2.2% will be the highest one since the second quarter in 2008 when the rate was +2.9% y-o-y.

The analysts hold that the rise in personal consumption, the biggest component of GDP, has triggered off a marked growth.

One of the eight analysts also pointed out excellent results in the tourist season, low fuel prices and reduction in income taxes as contributors to the positive trend in GDP.

 In addition, an increase in industrial production for eight months in a row is also seen as a positive contribution to Croatia's GDP.

The European Commission's Autumn Forecast 2015 has revised upward Croatia's GDP growth in 2015 to 1.1% from the Commission's initial forecast of 0.3%, while the International Monetary Fund's forecast for Croatia's economy in 2015 has been revised from the initial 0.5% to 0.8%. The European Bank for Reconstruction and Development (EBRD) expects the Croatian economy to rise by 0.9% this year.

Judging from those projections, 2015 is to be the first year of a positive growth in Croatia's economy after six recession-hit years.

Related stories

Croatia's Q3 GDP growth rate expected at 3%

PBZ puts Croatia's growth at 2.7% in 2016

PM: Croatia moving in the right direction, as shown by growth

Latest news

Trump-style rhetoric is making world more dangerous, Amnesty says

Divisive and "poisonous" language used by politicians such as US President Donald Trump is putting vulnerable populations at risk and making the whole world a more dangerous place, Amnesty International charged on Wednesday.

Canada soon to begin resettling Iraqi refugees, most of them Yezidis

Canada will resettle 1,200 survivors of the Islamic State campaign to target religious minorities in northern Iraq, Canadian officials announced Tuesday. 

Breitbart editor resigns after release of paedophilia comments

Milo Yiannopoulos, a controversial editor at the far-right Breitbart news website, resigned Tuesday after the emergence of recordings in which he appears to defend sexual relationships between young boys and older men.

Trump administration opens door for mass deportations

The US Department of Homeland Security laid the groundwork Tuesday for mass deportations of immigrants living illegally in the United States under an executive order by President Donald Trump last month.

Brexit bill: House of Lords says public can change mind on leaving EU

The British public should be able to change their minds on Brexit - just as Prime Minister Theresa May did, the upper chamber of parliament heard Tuesday during a marathon debate on legislation to kick off EU negotiations.

Italian lawmakers, rights activists clash over gay sex club scandal

Gay rights activists and conservative politicians clashed Tuesday after the chief of Italy's anti-discrimination office quit over allegations that money had been authorized for gay sex clubs.

EU countries agree new rules to avoid tax evasion

European Union finance ministers in Brussels on Tuesday reached a political agreement on new rules to ensure that multinational corporations do not declare profits in the countries where they pay the least tax but in the countries where they generate it.

Trump condemns "horrible, painful" anti-Jewish incidents

US President Donald Trump condemned a recent spate of threats against Jewish community targets across the United States, during a visit Tuesday to the newly opened National Museum of African American History and Culture in Washington.

FinMin expects Croatia to exit Excessive Deficit Procedure this spring

Finance Minister Zdravko Maric said on Tuesday Croatia could exit the Excessive Deficit Procedure this spring and that it was showing progress in correcting macroeconomic imbalances.

Austria seeks to create jobs, but new EU immigrants need not apply

Austria plans to create 160,000 jobs in the next three years by subsidizing companies, but the project has raised concerns because it effectively excludes people who recently immigrated from other EU countries.

Juncker: Not good for W. Balkans that some in Washington want to water down EU

European Commission President Jean-Claude Juncker said on Tuesday it was not good for Western Balkan countries that some people in the new US administration gave the impression of being against the European Union because those countries needed the prospects of EU membership.

Citizens invited to help create Croatian version of Monopoly

A project to create a Croatian edition of Monopoly, in which citizens can participate by submitting proposals and which could become a souvenir for tourists, was presented at a press conference on Tuesday.

German state approves full-face veil ban

Legislation that bans face veils in select public spaces and situations was agreed by the government of the southeastern German state of Bavaria on Tuesday.

Indian restaurant Gaggan in Bangkok named Asia's best for third year

Bangkok's Indian eatery Gaggan on Tuesday was named the best restaurant in Asia for the third consecutive year by Asia's 50 Best Restaurants.

HGK: 16 Croatian companies to exhibit at IDEX defence exhibition

Sixteen Croatian companies will exhibit their products at the 13th IDEX 2017 defence exhibition in Abu Dhabi, to be held on February 19-23.