Prime Minister Andrej Plenković said on Thursday that the slightly lower than expected growth of Croatia’s gross domestic product (GDP) last year was not felt in the budget, which is well-funded, and he assessed the latest data from the European Commission on the economic climate in Croatia as encouraging.
Reflecting on the data released yesterday regarding GDP growth in the last quarter of last year of 2 percent and the growth of the economy for the entire 2017 of 2.8 percent, Plenković emphasized at the beginning of the Government session that this is slightly less than the Government’s expectations, but he also noted that these are current data, and it will be seen what the growth will be when this data is revised.
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– However, in any case, this was not felt in the budget itself. On the contrary, revenues were good, especially consumption, as we saw in December, Plenković assessed.
The Croatian Bureau of Statistics (DZS) published on Wednesday the first estimate according to which GDP in the last quarter of last year grew by 2 percent compared to the same period a year earlier.
This is already the 14th consecutive quarter of GDP growth, but slower than in the previous one, when the economy strengthened by 3.3 percent. This is also less than expected. Eight macroeconomists who participated in a survey by Hina estimated on average that the economy grew by 2.7 percent year-on-year.
Economic climate at the highest level
For the entire last year, GDP grew by 2.8 percent, less than a year earlier when the growth was 3.2 percent and less than the Government’s estimates, which based last year’s budget on an expected growth of 3.2 percent.
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– What is particularly encouraging is the data that the economic climate in Croatia is at its highest level since the Commission has been monitoring this indicator. Thus, we are even above other EU member states, our index is 118.8 points, which is very good, and we must continue with all activities that will contribute to economic growth, emphasized Plenković.
According to a recently published report by the European Commission, the Economic Sentiment Index (ESI) in Croatia reached 118.8 points in February, which is its highest level since the Commission has been monitoring this indicator, reflecting optimistic expectations in industry and among consumers.
Appointment of a new commissioner
Reflecting on the new extraordinary administration of Agrokor, Plenković reminded that the Commercial Court in Zagreb made appropriate decisions yesterday. This court, at the Government’s proposal, dismissed Ante Ramljak from the position of extraordinary commissioner in Agrokor and appointed Fabrizio Peruško as the new commissioner, and Irena Weber as his deputy.
– The fundamental goal remains to achieve a settlement, the quality functioning of the company, and its restructuring within the legal deadlines. I believe that after this week, the new extraordinary commissioner and his deputy will familiarize themselves with all aspects and will strive to fulfill all three goals, said the Prime Minister.
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Following the recently held Economic Committee, he also stated that the Government remains open to discussing this topic in the Croatian Parliament so that there is a more direct dialogue with representatives of parliamentary parties about activities, in accordance with the special law that was passed just under a year ago.
