Page 31 - SE Outlook Regions 2024

increase was registered for chemicals (up 29.5% y/y). The manufacture of tobacco declined the most in October, by 51.9% y/y.
Mining output fell by 1.5% y/y, after decreasing by 17.1% y/y in September.
Utilities output decreased by 10.1% y/y in October, following a 32.5% y/y fall in September.
Meanwhile, Bulgaria’s Producer Price Index (PPI) for industry fell by 20.1% year on year in October, according to the latest available data. This decrease reflected primarily the sinking prices in the electricity, gas, steam and air conditioning supply sector, where the PPI fell by 48.8% y/y. There were smaller, though still substantial, decreases for manufacturing (1.7%) and mining and quarrying (4.9%) as well.
The PPI on the domestic market fell by 0.6% m/m and by 25.9% y/y in October. On the non-domestic market, the PPI dropped by 1.3% m/m and by 7.8% y/y.
2.4 Macroeconomy - Croatia
2.4.1 GDP growth
Croatia’s economy is expected to show moderate economic growth in 2024, projected between 2.3% and 2.7%, from an estimated 2.6% in 2023.
Croatia’s entry to Schengen and the eurozone in January 2023 helped the country’s economy expand despite the global recession caused by the Russian war in Ukraine.
According to the European Commission, Croatia’s economy should expand by 2.5% in 2024 and by 2.8% in 2025, driven mainly by domestic demand as inflation is expected to significantly slow down. The contribution from net exports is set to decrease substantially in 2024 but will remain positive, supported by increasing demand in the main trading partner economies.
The IMF has projected that Croatia’s economy will rise by 2.6% in 2024 from an estimated 2.7% in 2023, significantly below the 6.2% growth seen in 2022. The World Bank expects that Croatia’s economy will expand by 2.5%, down from an estimated 2.7% in 2023. In 2025, the GDP should rise by 3%.
Personal consumption is projected to remain robust thanks to the recovery in real incomes caused by the falling inflation and strong labour demand. Croatia will also benefit from EU funds that should continue supporting investment activity, especially government
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