Croatian economists downgrade 2012 GDP forecast to minus 1.5%.

By bne IntelliNews July 12, 2012
The chief economists of Croatias six biggest banks have cut their 2012 GDP forecasts by 0.2 percentage points to minus 1.5%, a survey of the Croat banking association HUB showed. In the beginning of the year the economists projected a contraction of between 0.5% and 2.1%, or an average of 1.3%. Now the upper limit of this band has dropped to minus 1% and the lower remained at 2.1%. All GDP components are expected to shrink this year with investments registering the largest drop (-3%). In line with this, the economists 2012 unemployment projection has also slightly deteriorated to 13.9% from earlier 13.1% (the optimistic scenario), while the pessimistic one remained flat at 16.4%. This means the economists now see a 14.6% jobless rate at end-2012, up from earlier 14.4%. The most significant change in the economists mid-year forecasts is in inflation, which is now seen at 3.3% at end-2012, up from earlier 2.5%. The only positive movement in the experts projection was observed at fiscal deficit, which is now seen at 4,7% of GDP, down from previous 4.9%.

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