Economy Grows 15.8 Percent in the Third Quarter

Thanks primarily to the growth in consumption, imports, exports, and investments, the Croatian economy grew by 15.8 percent year-on-year in the third quarter, marking the second consecutive quarter of solid recovery from the COVID-19 crisis.

The Croatian Bureau of Statistics (DZS) released its first estimate on Friday, indicating that the gross domestic product (GDP) in the last quarter increased by 15.8 percent compared to the same period last year.

This is the second largest jump in the economy, following a record growth of 16.5 percent in the previous quarter, demonstrating that the economy is firmly on the path to recovery from the COVID-19 crisis, during which GDP fell for four consecutive quarters.

Such a strong surge in economic activity in the last quarter is attributed, among other factors, to a low base, as GDP fell by about 10 percent year-on-year in the third quarter of last year due to the implementation of epidemiological measures to curb the spread of COVID-19.

The growth of the economy in the third quarter of this year is due to the increase in all components of GDP, with personal consumption being the largest component.

Almost All Components of GDP Increased

According to DZS data, household consumption rose by 16 percent in the last quarter compared to the same period a year earlier, slightly slower than the 18.2 percent growth in the second quarter.

Exports of goods and services increased by 48.8 percent year-on-year.

Specifically, goods exports rose by 13.1 percent, while services increased by 71.6 percent, primarily due to the recovery of tourism compared to the same period last year.

Imports of goods and services also increased by 13.9 percent year-on-year.

Goods imports rose by 12.4 percent, while services imports jumped by 22.3 percent.

Gross investments in fixed capital increased by 7.6 percent year-on-year in the last quarter, slower than in the previous quarter when growth was 18.1 percent.

However, government consumption fell in the last quarter, down by 4.5 percent year-on-year.

Faster Growth than the EU Average

According to seasonally adjusted data from DZS, the Croatian economy grew by 15.5 percent year-on-year in the third quarter, while it strengthened by 2.7 percent on a quarterly basis.

This is a faster growth than the EU average. According to the latest Eurostat data, seasonally adjusted GDP in the EU grew by 3.9 percent year-on-year and by 2.1 percent on a quarterly basis.