IMF nearly doubles forecast of Croatia's 2016 growth

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.

Last update: Tue, 12/04/2016 - 19:01
Author: 

Related

More from Croatia

PM and county heads to identify priorities of Croatia's regions

Addressing a two-day conference on competitiveness of local self-government, held in Trakoscan, Prime Minister...

Croats bag 1 silver and 5 bronze medals at Int'l Junior Science Olympiad

Croatian students pocketed a silver medal and five bronze medals during the 13th edition of the International Junior...

Orepic says has highlighted message of Cons. Court judges' selection

Interior Minister Vlaho Orepic has said that his criticism regarding the Constitutional Court is aimed at...

Prince Charles and Dutches Camilla unveil royal Christmas card, taken in Croatia

Charles, Prince of Wales and his wife Camilla, the Duchess of Cornwall, have chosen a photograph taken on 15 March,...

Parliament, HDZ commemorate 17th anniversary of Tudjman's death

On the occasion of the 17th anniversary of the death of the first president of the Republic of Croatia and the...