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29 Settembre 2022

Croazia

CROATIA: EBRD DOUBLES CROATIAN GDP GROWTH TO 6.5% IN 2022, BUT PREDICTS Significant Slowdown in 2023

The European Bank for Reconstruction and Development (EBRD) published on 22 September its latest ‘Regional Economic Prospects’ publication titled “A Cold Winter Ahead? Confronting the energy crunch,” in which it reviews the latest economic developments in the EBRD regions – and it has now more than doubled its estimated economic growth for the Croatian economy in 2022, but also predicts a significant slowdown of economic activity in Croatia in 2023, largely due to expected weak demand in the euro zone and the natural gas crisis, Croatian media report.The EBRD now expects Croatia's gross domestic product (GDP) to grow by 6.5% in 2022, up 3.5 percentage points from its May forecast. However, in 2023, the EBRD expects the Croatian economy to strongly slow down, with a forecast growth rate of only 2%, lower by 1.5 percentage points than the EBRD May forecast.The EBRD also noted that the Croatian economy fully recovered from the coronavirus (COVID-19) pandemic in 2021 when GDP was up 10.2%, with a strong contribution from personal consumption, exports and investments.In the 1H2022 economic activity grew strongly again, by 7.4%, spurred by domestic demand and exports, and personal consumption also remained strong despite the average drop of real salaries of 1.9%. However, consumer confidence weakened due to rising inflation, the EBRD noted. In 3Q2022, the key support to growth and budget revenue is expected to come from tourism, given the weakening of consumption and investments. The EBRD also lined the significant decline in growth in 2023 with weak demand from the euro area.According to the EBRD, Croatia is relatively well-protected from a potential shutdown of energy imports from Russia since its energy sector is mostly state-owned. The EBRD also highlights an appropriate share of renewables and access to alternative sources of supply via the liquid natural gas (LNG) terminal on the island of Krk.According to the latest projections by the EBRD, Croatia is expected to record higher growth rates than other Central European and Baltic countries. The Czech Republic and Latvia are expected to record the lowest growth in 2023, of 0.5% and 0.8% respectively. (ICE ZAGABRIA)


Fonte notizia: JUTARNJI LIST online edition 28/9/2022