Croat c-bank expects GDP drop of 1% in 2013 and 0.7% growth in 2014

By bne IntelliNews July 16, 2013

The Council of the Croatian National Bank (HNB) said it expects that Croatia's GDP will contract 1% in 2013 and will increase 0.7% in 2014.

The real GDP drop in 2013 could be attributed to declines in personal consumption and government spending and a very slow increase in exports and investments, the bank said in a statement on its website.

The decline in personal consumption is due to the unfavourable trends on the labour market, which will lead to a significant decline in disposable income. In 2014 the economy is expected to recover, reporting an economic growth as a result of better growth in exports and investments.

The inflation rate is forecasted at 2.6% on the year in 2013. Next year the inflation rate will continue to drop.

The central bank will conduct a monetary policy for maintaining the stability of the kuna against the euro. It expects that the country will enter in the excessive budget deficit procedure as part of the EU Stability and Growth Pact, which on the other hand will require strong fiscal consolidation in the coming years.

Related Articles

OTP’s Croatian subsidiary to buy Splitska Banka

The Croatian subsidiary of Hungary’s OTP Bank has signed an agreement to buy Splitska Banka, owned by the French Société Générale Group, OTP announced on December 21. Hungary’s largest ... more

Telekom Austria’s Vipnet acquires controlling stake in Croatian Metronet

Telekom Austria Group’s Croatian unit Vipnet has agreed to acquire a controlling stake in ... more

Belgrade Stock Exchange joins SEE Link platform

The Belgrade Stock Exchange (BELEX) has become an active member of the regional SEE Link network, SEE Link announced on December 5. SEE Link is a project started by the Bulgarian, Macedonian and ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss