Croatia’s economy on the rise, World Bank forecasts growth driven by consumer spending, tourism By Investing.com

The World Bank forecasts steady economic growth for Croatia, driven by robust consumer spending, tourism and EU-funded initiatives. The Croatian economy is expected to grow by 2.7% in 2023, a projection supported by falling inflation and improving external conditions. This follows a strong first half of 2023, which saw an expansion supported by strong private spending and increased demand for travel services.

Furthermore, the World Bank projects that Croatia’s economic output will continue to increase steadily, with an increase of 2.5% in 2024 and 3.0% in 2025. This growth trend follows an increase in GDP real recorded at 6.4% in 2022. .

The bank also forecasts a change in Croatia’s fiscal situation, with a GDP surplus of 0.4% recorded in 2022 expected to turn into budget deficits until 2025. On the inflation front, rates are expected falling from a peak of 10.7% in 2022 to just 2.3% by the end of 2025.

Public debt is also expected to decline as Croatia experiences steady growth and a reduced need for fiscal support, which should help contain deficits and reduce public debt. Despite these positive projections, overall regional growth remains below pre-pandemic figures.

In other parts of the region, a recovery is expected in Ukraine – with projected growth of 3.5% – and Central Asia, where a 4.8% rise is expected amid moderating inflation. and consumer resilience in Turkey through reduced political uncertainty.

However, despite an increase in military spending leading to unexpected growth in Russia, consumer demand is slowing. At the same time, countries like Armenia and those in the South Caucasus continue to perform strongly, while growth in the Western Balkans begins to slow.

Antonella Bassani, presumably a civil servant or economist associated with the World Bank, advocates innovative strategies to strengthen economic resilience in these regions.

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