world-economic-growth-ekonomski, financijski rast - novac.jpg
Photograph: Freeimages.com/Dominik Gwarek

The International Monetary Fund has nearly doubled its 2016 growth forecast for Croatia and the growth is projected to accelerate further in 2017, according to the latest IMF World Economic Outlook.

This year Croatia's economy is forecast to grow 1.9 percent, whereas last October the IMF forecast a growth of 1%. The IMF has also doubled the forecast of Croatia's growth for 2015 to 1.6% from the previously forecast 0.8%. As for 2017, the IMF projects that Croatia's economy will growth 2.1%.

The projections of the balance of payments surplus have been revised upwards from last autumn's 1.5% to 2.7%. The forecast of last year's surplus has been increased from 1.7% to 4.4%. In 2017, the IMF projects that the balance of payments surplus will slide to 2.1%.

The inflation forecast for this year has been revised downwards from 1.1% last autumn to 0.4%. The IMF estimates that last year prices decreased 0.5%, up from a 0.4% decrease forecast last autumn. In 2017, inflation is projected at 1.3%.

The IMF has also revised upwards its projection of this year's unemployment rate by 0.3 percentage points to 16.4%. It also raised by 0.3 pp its forecast of last year's unemployment rate to 16.9%. For 2017, the IMF forecasts the unemployment rate at 15.9%.

The IMF includes Croatia in emerging European economies. Their growth forecast for this year has been raised by 0.4 pp to 3.5%, the same as for 2015, while the growth projection for 2017 is 3.3%, down 0.1 pp from the previous forecast.

The IMF forecasts global growth at 3.2% in 2016 and 3.5% in 2017, a downward revision of 0.2% and 0.1%, respectively.

Related stories

IMF: Croatian economy expected to grow by 1.9% in 2016

PM says IMF forecast excellent, confirms govt's plan

EC forecasts Croatia's economy to rise 3.1 pct in 2017

EC to publish autumn economic forecast Thursday

Latest news

Croatia's registered unemployment rate rises to 15.4% in January

The registered unemployment rate in Croatia rose from 14.8% in December 2016 to 15.4% in January 2017, increasing for the fourth month in a row, the National Bureau of Statistics (DZS) said Thursday.

Norway's telecom group Telenor to leave Indian market

Norwegian telecommunications group Telenor said Thursday it was leaving the Indian telecom market and transferring its businesses there to Bharti Airtel.

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".