This report reviews key macroeconomic data and microeconomic developments for Croatia published between December 9, 2014 and January 5, 2015.
In the beginning of December, the Croatian Statistics Office confirmed the country’s GDP contracted by 0.5% in the third quarter of 2014. This was the 12th consecutive quarter the Adriatic country reported economic decline.
Later in the month, the central bank’s governor Boris Vujcic said he expects the country’s economy to stagnate or slightly grow by 0.2% in 2015 backed by increasing private consumption, recovering investments and a positive contribution from net exports. As for the 2014 economic performance, the central bank expected a decline of 0.5%, smaller than the 0.6% drop projected
in October.
The report presents the recommendations made by the World Bank to Croatia on how to accelerate its economic growth and adjust fiscal deficit. It also offers details about the results of the presidential elections organised in the country on December 28.
The report provides details on the results of the state tender for offshore hydrocarbon exploration and contains information about Croatia’s tender to award the concession of the management and maintenance of its motorways, a sensitive topic in the country.
Key Points:
• CPI inflation slowed to 0.2% y/y in November from 0.4% y/y a month earlier. The working-day
adjusted industrial output rose 2.8%, slightly accelerating from 2.7% in October. The annual growth of the eleven months of the year reached 1% y/y.
• The unemployment rate climbed to 19.2% in November from 18.7% in October. This was the third consecutive month of increase in the rate after seasonal hiring kept pulling it down in the previous six months. The average net monthly wage inched up 0.1% in October, following a 0.5% hike in September.
• January-October trade gap shrinks 0.4% y/y thanks to higher exports.