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Photograph: Photo by Mario Fajt, used under CC BY

Economic expectations for Croatia have worsened in August for the third month in a row, while the current state of the national economy is much better than it was in July, a survey carried out by the German Centre for European Economic Research (ZEW) and Austria's Erste Bank showed on Thursday.

Croatia's Economic Sentiment Indicator (ESI), which reflects financial market experts' expectations on a six-month horizon, dropped in August by 5.1 points from the previous month to 21.1 points. In July, the indicator slid by 1.1 points.

Its positive value in August shows that optimistic expectations continue to prevail. 

Along with Croatia, Turkey and Romania too saw a drop in ESI, of as much as 43.2 points and 1.9 points respectively. 

Expectations have improved the most for the Czech and Slovak economies, with the two countries' indicators each going up by 17 points. Hungary's indicator, too, showed a more marked improvement, of 15 points. 

The Economic Sentiment Indicator for the entire region of Central and Eastern Europe, including Turkey, went up by by a mere 3.5 points to 15.4 points.

As for the current state of the Croatian economy, the corresponding indicator has changed significantly, going up by 11 points to 11.1 points. This is the first time since late 2008 that positive expectations regarding the current state of the national economy prevail over negative ones, according to the survey.

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