Croatia accelerated economic growth in Q2-2018

Croatia accelerated economic growth in Q2-2018

Economic growth of Croatia accelerated in the second quarter of 2018, as reported by EUROSTAT. GDP increased by 1,1 percent compared to the first quarter of this year, ranking the country on the fifth place among EU member states.

Higher increase of the GDP than Croatian had been reported in Malta, Romania, Estonia and Slovakia. The lowest GDP rise was recorded in Denmark, Greece, France and Italy.

Quarterly reports are under seasonal influences and should not be relevant for year-to-year prognosis, experts say. Croatia will not rank as high on annual statistics, but will undoubtedly have solid increase of the gross domestic product in 2018 (expected to be around 3%).

The country is currently having public discussion about the 3rd phase of the economic reform, that would include lower VAT on basic aliments, obligatory immediate VAT-registration with 300.000 HRK income and decrease of the real estate transfer tax from 4% to 3%, effective as of January 1, 2019.