The State Bureau of Statistics (DZS) announced on Friday its first estimate indicating that the gross domestic product (GDP) grew by 2.8 percent year-on-year in the last quarter. This is significantly better than expected.
Is the growth a result of active policy measures or something else? Here is what economic experts told liderpress.hr. The GDP growth of 2.8 percent is a result of a long and very good tourist season, somewhat stronger export demand, and a mild recovery in personal consumption, claims economist Damir Novotny for Lider.
– It is not a result of active policy measures and should be viewed in that context. Political elites should not rejoice over this, as we expect either stagnation or decline in the next quarter – says Novotny, who perceives this GDP growth as essentially coincidental. This should by no means be a reason for not implementing the urgently needed structural reforms, which the European Commission also expects from us.
Economist Ante Babić is more optimistic and claims that, given that GDP has been growing for the third consecutive quarter, we have finally emerged from recession after 6.5 years.
– However, we are far from the prosperity of 2008. In the past six years, we have lost 15 percent of GDP, and such low growth rates will not put us back on the right track. Reforms are necessary for that, but not the populist ones that we throw around on a daily basis since the elections – Babić emphasized.
