The slowdown in the growth of Croatia’s gross domestic product, estimated at around 2.5 to 3 percent, will characterize the Croatian economy in 2008. The spillover of the global crisis, along with domestic influences, will nearly halve the growth rate from 5.6 percent in 2007, and forecasts for the following year, 2009, suggest economic growth of 2 or just 1 or even less percent.
Croatia will enter the end of 2008 with foreign debt exceeding 36 billion euros, and it is estimated that the share of foreign debt in GDP will increase from 89 to 93 percent. The current account deficit of the balance of payments, on the other hand, will rise to as much as 11 percent of GDP compared to 9 percent in 2007. (H)
