Page 43 - SE Outlook Regions 2023

2.4 Macroeconomy - Croatia

Croatia key economic figures and forecasts

2016 2017 2018 2019 2020 2021 2022

Nominal GDP (EUR bn) 47.3 49.9 52.7 55.6 50.2 58.3 ?

Real GDP (% y/y) 3.5 3.4 2.9 3.5 -8.1 4.5 ?

Industrial output (% y/y) -2.6 -10.7 4.4 -1.0 -7.5 17.7 ?

Unemployment rate (avg, %) 7.7 6.2 8.4 6.6 7.5 7.6 ?

Consumer prices (avg, % y/y) -1.1 1.1 1.5 0.8 0.1 2.6 ?

Consumer prices (eop, % y/y) 0.2 1.2 0.8 1.4 -0.7 5.5 9.2

Current account balance (% of GDP) 3.2 3.5 1.9 3.0 -0.1 3.4 2.2

Official FX reserves (EUR bn) 13.5 15.7 17.4 18.6 18.9 25 ?

Gross foreign debt (% of GDP) 95.2 88.6 82.4 74.1 81.8 81.1 ?

EUR/LC (avg) 7.5 7.5 7.4 7.4 7.5 7.5 ?

USD/LC (avg) 6.8 6.6 6.3 6.6 6.6 6.6 ?

Source: IMF, statistics office, central bank

2.4.1 GDP growth

Croatia’s economy performed well in 2022 with the growth projected at
between 5.7% and 6.5%, but economic growth will slow down
significantly in 2023, to around 1% or even less, due to the global
recession and lower disposable income resulting from surging inflation.

The most pessimistic forecast for 2023 is that of the Croatian central
bang and the government – for a mere 0.7% growth.

“It is projected that next year one-third of the world will end in a
recession, so we do not have optimistic expectations,” Finance Minister
Marko Primorac has said.

43 SE Outlook 2023 www.intellinews.com