HNB.jpg
Photograph: HINA/ Damir SENČAR /ds

Croatian National Bank (HNB) Governor Boris Vujcic said on Thursday that the central bank would soon revise upward the country's growth projection.

"The HNB will soon release a new projection of Gross Domestic Product, which will be higher than the previous one, having in mind the first quarter performance and results from April," Vujcic said when asked by reporters about the impact of the ongoing government crisis on the economy.

Addressing an international conference "An Enterprise Odyssey: Saving the Sinking Ship Through Human Capital" at the Faculty of Economics in Zagreb, the central bank's governor said Croatia was currently experiencing a growth in its economic activity, which was on the back of a rise in domestic demand in Q1 2016.

The current forecast of the HNB puts Croatia's GDP growth at +1.8% in 2016. A new forecast is expected in July.

Vujcic also pointed out that after seven years (of deleveraging), Q1 2016 recorded a trend of rebound in corporate lending, and also indications that a trend would occur in household lending.

Vujcic considers that it is important that recent indices of consumer and entrepreneur confidence were at very high levels.

"We will see how the current political situation will impact developments," he added.

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