The governor of the Croatian National Bank (CNB), Boris Vujcic, said that in 2020, real GDP could decrease by 8.9 percent, while in 2021 it is expected to grow by approximately 5 percent. Earlier CNB forecasts, published in mid-October, predicted a decline in real GDP of eight percent in 2020, and a growth of 5.2 percent in 2021.
As Vujčić pointed out at a virtual media briefing, the slowdown in the recovery in the fourth quarter of this year and the unfavorable epidemiological situation will somewhat slow down the recovery of the Croatian economy. This was due to additional epidemiological measures, ie partial closure of the economy, which slowed down economic activity, primarily in the hospitality industry.
Also, that the recovery in the fourth quarter of this year is slowing down is evidenced by indicators of business and consumer optimism, which are stagnating or declining. Growth of about five percent in 2021 should be generated by personal consumption, as well as export growth, which should be the strongest component of the recovery.
