Croatian GDP Grows for the 22nd Consecutive Quarter, but at a Slower Pace

Thanks to the increase in personal consumption, investments, and exports, the Croatian economy grew in the second quarter of this year for the 22nd consecutive quarter, but slower than in the previous quarter.

The Croatian Bureau of Statistics (DZS) published its first estimate on Thursday, indicating that the gross domestic product (GDP) in the second quarter increased by 1.7 percent in real terms compared to the same period last year.

This marks the 22nd consecutive quarter of economic growth, but slower than in the previous quarter when the growth was 2.2 percent. The annual GDP growth of 1.7 percent is the slowest growth since the last quarter of 2020, when the economy contracted due to the impact of the coronavirus crisis.

Growth of Consumption and Investments

According to DZS data, household consumption, which is the largest component of GDP, increased by 0.5 percent year-on-year in the second quarter, significantly slower compared to 2.6 percent in the previous quarter. Gross investments in fixed capital increased by 1.7 percent, slower than the 2.5 percent in the previous quarter.

Government consumption rose by 2 percent, after strengthening by 0.7 percent in the previous quarter. Exports of goods and services increased by 3.0 percent year-on-year, following a decline of 1.6 percent in the previous quarter. Specifically, goods exports rose by 5.2 percent, while services increased by 1.0 percent.

Imports of goods and services increased by 3.4 percent, while they fell by 0.3 percent in the previous quarter. In this context, goods imports rose by 2.5 percent, and services by 7.8 percent.

Annual Growth Faster than the EU Average

According to seasonally adjusted data from DZS, the economy grew by 0.4 percent quarter-on-quarter and 1.7 percent year-on-year in the second quarter. Thus, the annual growth of the domestic economy remains significantly faster compared to the average in the European Union (EU).

Eurostat recently reported that in the second quarter, the EU economy, according to seasonally adjusted data, grew by 0.5 percent compared to the previous quarter, while it increased by 1.2 percent year-on-year. The eurozone economy, on the other hand, grew by 0.4 percent quarter-on-quarter and 1.0 percent year-on-year in that quarter.