wiiw Forecast Reports
CROATIA: Uncertainty persists in the wake of the euro introduction
in: Sailing Through Rough Waters
wiiw Forecast Report No. Spring 2023, April 2023 , pp. 52-55
Thanks to robust household consumption and a stellar summer tourist season, as well as better-than-expected growth in Q4 2022, Croatia’s economy grew by 6.3% in 2022. In January 2023, the country adopted the euro and joined the EU’s border-free Schengen Area, which will likely boost trade, tourism and investment in the long term. Nevertheless, given the high rate of inflation, the deteriorating funding conditions and the uncertainty (which will act as a drag on private consumption and investment), we expect the economy to grow by only 2.5% in 2023.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Croatia