This year’s economic growth rate in Croatia, according to current estimates, could be around 6 percent, with personal consumption providing the largest boost to growth, and it is expected that this year will end without a significant increase in the share of foreign debt in GDP, some of the conclusions from the meeting of the Council of the Croatian National Bank.
The Council of the HNB reviewed economic and monetary developments in the past period at today’s meeting and adopted a monetary projection for the last quarter of this year, as well as made several other decisions within its jurisdiction, it was announced by the HNB. Available indicators suggest that dynamic economic activity continued in the third quarter. According to current estimates, this year’s economic growth rate could be around 6 percent. The largest boost to growth comes from personal consumption, while investment, which had the largest share in last year’s growth, is less significant. The impact of net foreign demand is unfavorable this year as well, which is reflected in the high balance of payments deficit, the announcement states. It is emphasized that monetary developments are proceeding as predicted.
This also applies to the movement of bank placements, which remain within expected frameworks. The amount of foreign debt at the end of September was 30.7 billion euros, the same as at the end of June. In the meantime, banks have reduced their external borrowing by 1.4 billion euros, state debt has slightly increased, and corporate debt has been rising, but with decreasing growth month by month. Given this, it can be expected that this year will end without a significant increase in the share of foreign debt in gross domestic product. This also achieves one of the most important goals of the measures taken by the central bank, focused on reducing the country’s external vulnerability.
