The Zagreb Institute of Economics (EIZ) has revealed that Croatia’s
real Gross Domestic Product (GDP) will this year record a positive growth rate of 1.5% in 2015. Representatives of the office said that estimates for next year predict growth of 1.1 percent. EIZ estimates that in the next two years, investment will continue to grow along with household consumption, with a slight reduction in state expenditure resulting from budget cuts, while foreign trade will continue to contribute to GDP growth, but with somewhat lower rates of exports and imports.
According to EIZ, if no significant expenditure occurs before the year’s end, Croatia’s budget deficit this year could fall to 4.5 percent of GDP. This would continue to fall in 2016 and 2017 to 4 percent and 3.5 percent respectively.
