Croatian GDP to rise above 2% (year-on-year) in Q-1 2018

Croatian GDP to rise above 2% (year-on-year) in Q-1 2018

Thanks to strong consumption, it had been estimated that Croatian GDP in Q-1 2018 rose faster than in Q-4 2017, but economists warned on rather weak production and steady export.

Eight domestic experts were interviewed by HINA to estimate the GDP in the first trimester of 2018. On average, they quoted the figure of 2,3% on annual basis. It would mean that the GDP has been on the rise for 15 consecutive trimesters.

All of them agreed that the personal consumption was the crucial growth component. These claims may be justified by the encouraging retail statistics (Q-1 2018 rise of 3% on year-to-year basis and 43 months continuously on increase).

In addition, tourists have made around 2 million overnight stays in Q-1 2018, representing an increase of 22% compared to Q-1 2017, while the investments were also on the rise for 11 trimesters in a row.

With interest rates being very low and taxable, many individuals have decided to invest in Croatian property market. This does not come as a surprise, having in mind over 159 billion Kuna savings in domestic banks. Reading these statistics, one can easily conclude that the property market in Croatia will perform well this year.