This report reviews key macroeconomic data and microeconomic developments for Croatia published between February 7 and March 6, 2015.
In the beginning of February, Fitch Ratings affirmed Croatia's long-term foreign and local currency Issuer Default Ratings (IDR) at BB and BB+ respectively with stable outlook. The ratings agency also forecast a GDP growth of 0.5% this year due to improved industrial production and retail sales. Fitch said it sees consumer prices dropping 0.5% in 2015.
Later in the month, the European Commission said it will decide in May if it activates the excessive imbalance procedure (EIP) for Croatia after the assessment of the National Reform Programmes (NRPs) and other commitments to structural reforms announced by that date. The commission noted that the country is experiencing excessive macroeconomic imbalances, which require decisive policy action and specific monitoring.
At the beginning of March, the statistics office confirmed the Croatian economy contracted by 0.4% last year, registering its sixth year of consecutive decline. This is more positive than the expectations of the EC whih saw a 0.5% drop.
The report also provides details on the results of the state tender for onshore oil and gas exploration. It also reveals the latest plans of the government regarding the consumer bankruptcy law aimed at helping the country’s indebted citizens.