Croatia’s economy expands for 17th consecutive quarter in 1Q25

Croatia’s economy expands for 17th consecutive quarter in 1Q25
/ bne IntelliNews
By bne IntelliNews May 28, 2025

Croatia’s economy grew by 2.9% year-on-year in the first quarter of 2025, making this the 17th consecutive quarter of growth and placing it among the fastest-growing economies in the European Union, according to official data released on May 28.

The Croatian Bureau of Statistics (DZS) said real GDP rose by 2.9% in the first three months of the year, with gross value added (GVA) up 2.7%. Growth was broad-based, though activity declined in agriculture and the information and communication sectors.

Prime Minister Andrej Plenković hailed the figures as a sign of resilience and continued convergence with older EU member states. “With strong economic growth and an A credit rating, we continue to raise the standard of living of Croatian citizens,” he posted on social media platform X.

Finance Minister Marko Primorac attributed the growth to robust investment activity, including post-earthquake reconstruction efforts. “The continuation of strong growth is still in line with our expectations,” he said, pointing to a sharp rise in exports and steady household consumption, according to a government statement.

Exports of goods and services rose 6.0%, while imports jumped 8.8%. Household spending increased by 1.7%, buoyed by higher retail and hospitality turnover. Government consumption surged 5.8% from a year earlier.

Special advisor to the prime minister, Zvonimir Savić, noted that “only five EU countries have sustained similar growth dynamics since 2020,” and highlighted that Croatia is nearing 80% of the EU’s average development level, the government statement said.

The government forecasts full-year GDP growth of 3.3% in 2025.

Data

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