Croatia's economy grew 2.8% in Q2

Croatia's economy in the second quarter of 2016 grew by 2.8% from the same period of last year, which is a slightly faster growth rate than in the previous quarter and higher than expected.

The national statistical office on Wednesday published its preliminary estimate showing that GDP in Q2 this year grew 2.8% from Q2 2015.

The figure is better than expected. Eight economic analysts interviewed by HINA had predicted that the economy in Q2 would grow by 2.3% from the same period of last year, their estimates ranging from 2.1% to 2.5%.

This is the seventh consecutive quarter GDP has been growing, this time faster than in the previous quarter, when GDP went up 2.7%

Caretaker Finance Minister Zdravko Maric said the GDP growth was in line with analysts' expectations and that it partially met the government's expectations for Q2.

"With a stable and somewhat slower increase in exports, Q2 also saw good results in terms of personal consumption and, which is very encouraging, investments," said Maric, adding that investments had grown by more than 6% in Q2.

The national statistical office said that the biggest contribution to GDP growth was made by the export of goods and services, which grew 4.1% in Q2.

The contribution of domestic demand was positive. Of the components of domestic demand, household final consumption expenditure had the most positive effect on economic activity, going up by 3%.

The contribution of net foreign demand was negative.

The other most important components of GDP went up as well, for example, state spending grew 2.6% while gross investment in capital assets jumped by 6.3%.

According to seasonally adjusted data, GDP in Q1 grew 0.6% from the previous quarter, while in relation to Q1 2015 it went up 2.0%.

Asked about projections for the period until the end of the year, Maric said that GDP growth in Q2 and the ongoing tourist season were raising the government's projection to 2.5%.

Last update: Wed, 31/08/2016 - 16:38
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