In the new edition of Croatian Economic Outlook Quarterly, analysts from the Institute of Economics Zagreb (EIZ) provide the latest forecasts and an analysis of economic trends in Croatia.
EIZ analysts increased their outlook from 1.5 to 1.9 percent for this year and from 1.8 to 2.1 per cent fpr 2017.
"Last year the economy grew by 1.6 percent, after six consecutive years of decline. This positive momentum carried on into the beginning of 2016 as well, with first quarter’s growth rate of 0.8 percent (measured quarter-to-quarter, seasonally adjusted). When compared to the same period last year, GDP in the first quarter of 2016 increased by 2.7 percent. Based on positive signals from all GDP components, we have revised our GDP forecasts for the current and the following year upwards and they now stand at 1.9 and 2.1 percent, respectively," EIZ said in its Economic Outlook Quaterly.
After six consecutive years of declining activity, Croatian GDP rebounded in 2015 and recorded a positive growth rate of 1.6 percent, still far from pre-crisis growth levels, but nonetheless an important turnaround for future prospects, EIZ said.
"Based on newly released data for 2015, we have slightly revised our forecasts for real GDP growth rates for 2016 and 2017 upwards to 1.5 and 1.8 percent. Unlike in recession years, domestic demand is expected to have a positive contribution to GDP growth, as was the case in 2015," the report read
Although the initial effects of personal consumption increase due to tax changes have subsided, real disposable income is permanently increased.