EBRD lowers Croatia's 2013 GDP forecast to minus 0.3% from plus 0.8%.

By bne IntelliNews May 10, 2013

The EBRD said its forecast for Croatia's 2013 economic growth has worsened and it now expects a 0.3% contraction instead of the earlier projected 0.8% expansion. The latest forecast is part of the Bank's Regional Economic Prospects report published on May 10. It compares with the previous estimate made in January.

In 2014, however, the EBRD sees the economy recovering to a growth of 1.9% from a five-year recession.

The GDP contracted about 2% in 2012, the report stressed. The main problem of the Croatian economy is that it continues to fail addressing its challenges with uncompetitive industries, labour market inflexibility and a large and inefficient public sector.

The EBRD stressed that the country will be able to benefit from the EU accession once it joins the bloc in July 2013. However, the government has to accelerate reforms in order to obtain full positive effects from the EU membership.

In the EBRD’s Central Europe and the Baltic States region, part of which is Croatia, the average GDP growth forecast is 0.8% for 2013, down from the January projection for a 1.2% expansion. The region also includes the three Baltic states, Hungary, Poland, Slovakia and Slovenia.

Croatia's average annual inflation is expected to decelerate to 3.1% in 2013 from 3.4% in 2012. The general government deficit is seen at 4.1% of GDP in 2012. The current account surplus last year is projected at 0.1% of GDP, while the net FDI at 2.4% of GDP.

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