wiiw Current Analyses and Forecasts
Croatia: Difficult to come out of the crisis
in: Recovery - in Low Gear across Tough Terrain
wiiw Current Analyses and Forecasts No. 7, March 2011 , pp. 77-79
In Croatia the economy faced another year of recession in 2010. The recovery expected for 2011
hinges on a further improvement in external demand. Employment will continue to contract as the
labour market reacts rather belatedly to production growth, and unemployment is expected to stagnate
or at best drop only slightly. It is thus expected that private consumption will recover only gradually.
The current account deficit will remain within more moderate limits than before the crisis, ranging
between 4-5% in the years to come. Servicing foreign debt will remain one of the key challenges.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Croatia, SEE