dubrovnik .jpg
Photograph: Photo by Ivan Ivankovic, used under CC BY

The Croatian economy is expected to grow by 1.9% in 2016 before picking up to 2.1% in 2017, the International Monetary Fund (IMF) said in its World Economic Outlook on Tuesday, confirming its April projection.

The IMF reaffirmed and doubled its growth estimate for Croatia for last year, according to which the Croatian economy grew by 1.6% in 2015.

Inflation projections for Croatia for this and next year have been revised. The IMF expects consumer prices to decline by 1.0% in 2016, while in April they were projected to rise by 0.4%. Next year, consumer prices are to rise by 0.8%, while in the April report they were expected to increase by 1.3%. The estimated decline in consumer prices in 2015 of 0.5% was confirmed.

The IMF revised upward its forecast of Croatia's current account surplus in 2016, to 3.0% of GDP from 2.7% projected in April. Next year the surplus is expected to slide to 2.2%, compared with 2.1% forecast in the spring outlook. The forecast for 2015 was revised from 4.4% to 5.2% of GDP.

The IMF reaffirmed the estimated unemployment rates for Croatia in 2016 and 2017 of 16.4% and 15.9% respectively, as given in the April report. It also confirmed its forecast for 2015, according to which the unemployment rate was 16.9%.

The IMF revised down its growth forecast for emerging economies in Europe, including Croatia, in 2016 from 3.5% to 3.3%. Next year economic activity in this group of countries is expected to slow to 3.1%, down by 0.1 percentage point from the IMF's July projection.

Among these countries, Romania is expected to experience the highest growth this year, of as much as 5.0%, followed by Turkey (3.3%), Poland (3.1%) and Bulgaria (3.0%).

Growth for the euro area is forecast at 1.7% in 2016 and 1.5% in 2017. 

The global economy is projected to grow by 3.1% in 2016 before picking up to 3.4% in 2017, reflecting the IMF's spring forecast.

"A return to the strong, sustainable, balanced, and inclusive growth that Group of 20 leaders called for at Hangzhou in September still eludes us. Global growth remains weak, even though it shows no noticeable deceleration over the last quarter. ... Taken as a whole, the world economy has moved sideways," Maurice Obstfeld, Economic Counsellor and Director of the Research Department at the IMF, said in his opening remarks while presenting the report.

"Over the medium term, while we expect that advanced economies will continue along a disappointingly low growth path, emerging market and developing economies should accelerate as most of the large countries with currently shrinking economies stabilise and return to their longer-term growth paths," Obstfeld said.

Related stories

Latest news

Iraq claims advance in retaking Mosul airport from Islamic State

Iraqi forces wrested back half of Mosul's airport from Islamic State Thursday, shortly after entering the facility during their ongoing campaign to drive the extremist militia from its last key stronghold in the country.

Rights group: Video shows Cambodian police beating election candidate

A video posted on YouTube shows eight Cambodian paramilitary police beating a man identified as an opposition candidate at a Phnom Penh shopping mall, a rights group said Thursday. 

Malaysia asks Interpol to issue alert for suspects in N Korean death

Malaysia on Thursday requested that Interpol issue an alert for four North Koreans suspected of involvement in last week's killing of Kim Jong Nam, the estranged half-brother of North Korean leader Kim Jong Un.

British suspect arrested in Deutsche Telekom hacking

A 29-year-old British citizen suspected of involvement in a cyberattack that left nearly 1 million Deutsche Telekom customers without services last year has been arrested, German federal police said on Thursday.

Eight killed as bomb targets restaurant in Pakistan’s Lahore

A bomb ripped through a high-end restaurant in the Pakistani city of Lahore on Thursday, killing eight people, officials said, marking another attack amid a surge in violence by Islamist militants that has ended months of fragile calm.

Philippine court orders arrest of top Duterte critic

Senator Leila De Lima, one of the most outspoken critics of Philippine President Rodrigo Duterte, was on Thursday ordered arrested on illegal drug charges by a Philippine court.

Hrvatski Telekom reports 2016 net profit of HRK 934 mn

Hrvatski Telekom (HT) generated a net profit of HRK 934 million in 2016, which is 1% more than in 2015, the telecommunications company said on Thursday in a report on its financial results in 2016.

FDI in Croatia totals EUR 1.2 bn in Jan-Sept 2016

Foreign direct investment (FDI) in Croatia totalled EUR 1.227 billion in the first nine months of 2016, which is 552 million or 82% more than in the same period in 2015, analysts at Raiffeisenbank Austria (RBA) said in a report on Thursday, citing data provided by the Croatian National Bank.

Vietnam asks YouTube to block politically sensitive videos

Vietnamese authorities have demanded that YouTube block 17 videos that thez say violate the country's laws restricting speech, state media reported Thursday.

Croatian-Czech Society marks 25th anniversary

The Croatian-Czech Society (HCD) celebrated a quarter century since its foundation in Zagreb on Wednesday evening and the occasion was marked by the launch of a book, "The Croatian-Czech Society: The First 25 Years".

Trump administration reverses transgender bathroom protections

The Trump administration on Wednesday withdrew Obama-era guidance about the use of school and university bathrooms by transgender students, local media reported.

Several Dakota Access Pipeline protesters arrested as deadline passes

Several people at a camp protesting against a controversial oil pipeline in the US state of North Dakota were arrested Wednesday after a deadline to vacate the land passed, local media reported.