Yesterday, the Croatian Bureau of Statistics published its first estimates for GDP growth in the second quarter of 2019. According to the bureau’s data the Croatian economy grew by 2.4% in Q2, surprising on the downside as investors hoped GDP could continue rising at strong pace close to Q1’s 3.9%.
According to the Bureau of Statistics, Croatian economy expanded by 2.4% YoY in Q2, surprising on the downside as investors hoped GDP could continue rising at strong pace close to Q1’s 3.9%. Looking at the detailed breakdown, slowdown was broad based. Household consumption, main contributor to GDP, increased by modest 2.7% YoY compared to the first quarter when it grew by 4.4%, while exports of goods and services increased by only 1.3% YoY which is in line with slowdown in demand of main trading partners. On the more positive side, investments’ growth did decelerate compared to the first quarter but still increased by stellar 8.2% YoY confirming that investments are here to support this year’s solid GDP growth.
Croatian GDP, Real Growth Rates (%, YoY)