This report reviews key macroeconomic data and microeconomic developments for Croatia published between March 7 and April 6, 2015.
The Zagreb Institute of Economic confirmed its 0.2% GDP growth projection for this year but slightly lowered its next year’s forecast to 0.8% from 0.9% projected in January. The institute said it expects exports to be the sole driver of growth this year, while private consumption is expected to stagnate.
Retail sales, which have been rising for several months, are expected to post a 0.5% increase this year, the Croatian Chamber of the Economy (HGK) said, adding that it expects the rise to be supported by real growth in net wages and continuation of positive trends in the tourism sector.
The report also provides details on the results of the early local elections and a possible date for the organisation of general elections and reveals the results of the latest opinion poll measuring the support for the country’s political parties. It mentions the latest plans of the government regarding the concession of Croatia’s motorways and the recapitalisation of state-owned power utility firm Hrvatska Elektroprivreda (HEP).


Key Points:


• CPI inflation slowed to 0.4% y/y in February from 0.9% y/y a month earlier. The working-day adjusted industrial output recovered in February (up 1.9% y/y) after contracting by 5% in January.

• The unemployment rate stayed flat on the month at 20.3% in February. The stagnation in the Croatian jobless rate comes after five months of consecutive growth. The average net monthly wage rose by real 2.8% y/y in January, following a 3.4% increase in December.
• January trade gap shrinks 29% y/y as both imports and exports declined.