Croatian Economy Grows by 2.9 Percent in the First Quarter

The Croatian Bureau of Statistics (DZS) announced on Wednesday its first estimate indicating that the gross domestic product (GDP) in the first quarter of 2025 increased by 2.9 percent in real terms compared to the same period a year earlier. This marks the 17th consecutive quarter of economic growth, although at a slower pace than in the previous quarter, when growth was 3.9 percent.

According to DZS data, household consumption, which is the largest component of GDP, increased by 1.7 percent year-on-year in the last quarter, significantly slowing down compared to the previous quarter, when its growth was 6.3 percent. Gross fixed capital investment rose by 4.5 percent, down from 9.5 percent in the previous quarter. Government consumption increased by 5.8 percent, after strengthening by 8.9 percent in the previous quarter.

Imports of goods and services increased by 8.8 percent, which is a slightly slower growth compared to 9.9 percent in the previous quarter. Specifically, imports of goods rose by 8.5 percent, while services increased by 11.4 percent. Exports of goods and services, on the other hand, grew by 6 percent year-on-year in the last quarter, faster than the 4.7 percent growth in the previous quarter. Exports of goods jumped by 11.6 percent, while services fell by 1.8 percent.

According to seasonally adjusted data from the DZS, the economy grew by 3.1 percent year-on-year in the first quarter of this year, and by 0.3 percent quarter-on-quarter. Thus, the growth of the domestic economy on a year-on-year basis remains significantly faster compared to the EU average, while it is the same on a quarterly basis.

Eurostat recently reported that in the first quarter of this year, the EU economy, according to seasonally adjusted data, grew by 0.3 percent compared to the previous quarter, while it increased by 1.4 percent year-on-year. The eurozone economy, on the other hand, grew by 0.3 percent quarter-on-quarter and by 1.2 percent year-on-year.