Croatia's real GDP in the first quarter of 2016 increased by 0.6% on the previous quarter, and indicators for the start of the second quarter show that GDP has continued to grow, the Croatian National Bank (HNB) said in a statement from a meeting of its Council on Wednesday.
The HNB Council discussed the latest economic and monetary indicators, adopted the annual report on the HNB's work in 2015, the annual report on the work of the Croatian Monetary Institute in 2015, and several decisions.
The GDP growth was driven by increased domestic demand, while exports stagnated. The annual fall of 1.7% in consumer prices in April remained unchanged from March and the monthly rate of inflation in April was affected by a drop in natural gas prices of 18.1%.
The HNB's monetary policy stance has remained expansionary. In the first four months of the year, lending to domestic sectors rose as a result of increased corporate lending and a strong seasonal increase in household lending. Cash fiscal data show further fiscal consolidation in the first quarter of 2016, the HNB said.