Croatian National Bank (HNB) analysts predict that real GDP will exceed 2.3% this year, which they predicted in July, primarily owing to stronger economic growth in the second quarter and better trends at the beginning of the third, thanks in great part to a good tourism season.
In Q2, economic growth was of a similar intensity as at the beginning of the year and real GDP went up 2.8% year on year, much more than predicted, the analysts say in a bulletin which the central bank published on Monday, adding that economic activity in Q2 continued to increase at a similar pace as in Q1, by 0.5%.
Positive trends are expected to continue for the remainder of the year and the HNB forecast indicates that economic activity in Q3 could go up from Q2 thanks to an exceptional tourism season. Still, the annual real GDP growth rate might be a little lower than in Q2 because of a very dynamic economic activity in Q3 2015.
This year's Q2 was also characterised by favourable trends on the labour market.