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Real GDP Growth in the Second Quarter at 6.6 Percent

The Croatian gross domestic product in the second quarter of this year increased by 6.6 percent in real terms compared to the same period last year, the Croatian Bureau of Statistics announced today.

This remains a high rate of economic growth, although slightly lower than in the first quarter of this year when GDP grew by 7.0 percent in real terms, which was the highest quarterly growth rate in the past ten years. Data from the CBS on quarterly GDP growth rates since the beginning of 2003 show that the rate of 6.6 percent is the second highest quarterly growth rate in the past four and a half years. The growth of GDP in the second quarter of this year was most influenced by personal consumption, which recorded a growth of 6.5 percent compared to the second half of last year. This is a slightly lower rate than in the first quarter of this year when personal consumption recorded a growth of 7.1 percent, but it is also the second highest quarterly growth rate of personal consumption since the beginning of 2003.

In the second quarter of this year, more favorable trends in foreign trade were also recorded, namely a faster growth of exports of goods and services compared to imports – exports grew at a rate of 8.9 percent, while imports grew by 6.4 percent compared to the second quarter of last year. Government consumption in the second quarter of this year increased by 2.7 percent compared to the same period last year, which is just slightly lower than the 2.8 percent from the first half of the year. A slowdown is recorded in capital investments, which after a growth of 11.2 percent in the first quarter of this year recorded a growth of 5.8 percent in the second, which is also the lowest rate in the last two years.

Statistical data on GDP calculation by the production method, or gross added value, show increases in all activities, with a total growth of 6.3 percent. In industry, which has the largest share, above-average growth of gross added value was recorded, at 8.4 percent. Growth rates of 8.4 percent are recorded in two other activities – hotels and restaurants, and transportation, storage, and connections, while in financial intermediation and real estate business, a growth rate of 8.5 percent was recorded, and in trade 7.5 percent. In agriculture, a growth of gross added value of 3.7 percent was recorded in the second quarter, while a slowdown in the growth rate was recorded in construction, with a rate of 2.5 percent being the lowest rate in the last two years, since the second quarter of 2005. (H)