Croatia's Q2 GDP drop confirmed at 0.8% y/y - stats office

By bne IntelliNews September 10, 2014

Croatia's GDP fell by a real 0.8% in the second quarter of 2014, the statistics office said on September 10, confirming its flash estimate released last month. Thus, Croatia reported the 11th consecutive quarter of economic contraction. The Q2 performance was worse than the 0.6% y/y decline in Q1 and the 0.5% y/y fall in Q2 2013. The Q1 contraction was revised from an earlier estimate of 0.4%.

Seasonally adjusted GDP decreased by 0.3% q/q and by 1.0% y/y in Q2.

Household consumption declined 0.5% y/y and public consumption shrank 3.4% y/y in Q2. The decrease of the gross fixed capital formation was 5.2%. On the other hand, exports of goods and services jumped 7.9% y/y, while imports increased 2.2% y/y. The contribution of domestic demand to GDP growth was negative (2.9pps), while the contribution of net foreign demand was positive (2.1pps). 

The gross value added (GVA) declined by a real 0.4% compared to the same quarter of 2013, the statistics bureau said. A detailed look in the Q2 GDP breakdown shows the decrease was influenced mainly by the drop in construction (-6.7% y/y) and agriculture, forestry and fishing (-3.1% y/y). The biggest growth was registered by the manufacturing sector (+2.7% y/y).

Both the EC and the IMF expect Croatia’s full-year GDP to contract this year, forecasting a GDP fall of 0.6% and 0.8%, respectively, due to low private consumption and investments. Rating agency S&P said it sees the country’s economy declining by a real 0.9% in 2014.

y/y Q2 2014 Q1 2014 Q4 2013 Q3 2013 Full-year 2013
GROSS DOMESTIC PRODUCT -0.8 -0.6 -1.1 -0.5 -0.9
Final consumption          
households -0.5 -0.5 -1.8 -0.4 -1.3
non-profit institutions serving households 1.3 -0.1 5.5 5.6 4.8
government -3.4 -2.1 1.4 -0.8 0.5
Gross fixed capital formation -5.2 -3.6 -3.1 0.3 -1.0
Exports of goods and services 7.9 11.4 7.4 3.7 3.0
Imports of goods and services 2.2 7.6 6.0 5.3 3.2
Source: Croatia's Stats Office          

Related Articles

Croatia raises €1.25bn via 10-year Eurobonds as yields fall to historic lows

The Croatian finance ministry sold €1.25bn worth of 10-year Eurobonds with an actual yield of 3.20% and a coupon rate of 3%, the ministry said in a March ... more

EBRD says 2016 net profit was around €1bn

The European Bank for Reconstruction and Development (EBRD) said it made a net profit of around €1bn in 2016, up by a quarter from the €802mn it made in ... more

CEE lender Erste lifts profit by a third to €1.265bn in 2016

Erste Group reported on February 28 record net profit of €1.265bn in 2016, a rise of 31% on the previous year. The Austrian banking group proposed doubling its dividend to €1 a share for the ... 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