Trends in the economies of the most important partners in foreign trade, indicators in Croatia's economy in the second quarter of this year and the outlook for Q3 indicate that Croatia's economy in 2016 might rise more than the projected 1.5%, analysts of the RBA bank says in the newsletter "RBAnalize" published on Tuesday.
The article headlined "Economy is recovering in the shadow of politics" reads that the recovery that started in 2015, has continued in the first half of 2016 on the back of the rising domestic demand owing to the continued decrease in prices, stabilisation of the labour market and good signs from tourism.
The authors of the article also welcome positive headway in the absorption of the EU funds and a rebound in the growth rate in the construction sector.
They note that the positive effect in the exports of goods and services has been reduced by an increase in imports, which points to the need to boost Croatia' competitiveness so as to cut down the high dependence on imports.
All these signs indicate that Croatia's GDP might be higher in 2016 than projected by Raiffeisenbank Austria (RBA) analysts.
They, however, comment that positive trends have also been overshadowed by political frictions that resulted in the ouster of the Tihomir Oreskovic government and a snap election set for 11 September.