EU Commission Reduce Croatian GDP Forecast

The European Commission has published its new autumn forecasts today and reduced its estimate in the decline of the Croatian economy this year from 1.0 to 0.7 percent, but increased its estimate of the government deficit and public debt.

According to Commission estimates, Croatia’s gross domestic product (GDP) should grow 0.5 percent in 2014 and 1.2 percent in 2015.

“I would like to be able to talk about Croatia in somewhat better circumstances, because real GDP growth will remain negative this year, while next year it will turn slightly positive and continue to grow the year after that,” said Commission Vice-President for Economic and Monetary Affairs Olli Rehn.

The Commission is its latest forecast has increased its estimate of public debt in Croatia, and now expects this year to be 59.6 percent of GDP,  64.7 percent next year, and in 2015 to increase to 69 percent. By comparison, in the commissions spring outlook, estimates were that the general government debt this year would reach 57.9 percent, and 62.5 percent next year.