Finally some good news regarding the Croatian economy, the European Commission have stated that their outlook for Croatia’s growth in 2016 is a rise of 2.1 percent. The EC had previously estimated that Croatia’s growth this year would be 1.4 percent but this week revised that figure to 2.1 percent.
“Growth likely decelerated in the fourth quarter, but all in all, Croatia’s economy is expected to have expanded by 1.8% in 2015. Benefiting from the strong momentum gathered in the second half of 2015, the recovery is forecast to gain ground in 2016,” the EC said in their report.
One of the main reasons for this promising financial forecast for 2016 was domestic demand accompanied by continued investments driven by EU funds, meaning that GDP is expected to grow by 2.1 percent this year.
However the European Commission warned that the high public and private debt in Croatia was holding back the economy. In 2014 the debt to GDP ratio in Croatia was 85.1 percent, that figure rose in 2015 to 86 percent, whilst the forecast for 2016 is for this figure to reach 87.4 percent.