The European Commission announced on February 15 that it has marginally increased its growth forecast for Croatia's economy in 2024 to 2.6%, up from the previous projection of 2.5% in November.
The boost is attributed to robust domestic demand and significant carry-over effects. Household consumption is expected to accelerate as inflation subsides, and both employment and real wages continue to rise.
The government sector is anticipated to play a crucial role in supporting wage growth through public sector wage-setting reforms. Although investment and public consumption growth are expected to slow down, they are projected to remain solid, supported by the Recovery and Resilience Plan and improved financing conditions.
Service exports growth is predicted to decelerate, while goods exports are expected to recover gradually. However, due to increased imports, net exports are likely to contribute negatively to GDP growth. The Commission maintains its GDP growth projections for Croatia at 2.6% in 2023 and 2.8% in 2025.
In terms of inflation, Croatia's HICP declined to 8.4% in 2023 from 10.7% in 2022.
Source:https://seenews.com/news/ec-raises-croatias-2024-economic-growth-forecast-to-26-848659
