Croatia: GDP grows by a record 16.1% in Q2

Croatia’s GDP growth of more than 16% in Q2 2021 shows that the country’s economy is recovering faster than expected and this confirms that the government has responded strongly to the crisis, ensuring economic stability in the current pandemic, said the Croatian Prime Minister. Andrej Plenković Friday.

The Croatian Bureau of Statistics (DZS) on Friday published its preliminary estimate showing that GDP in Q2 grew by 16.1% from the same period in 2020.

This is the first time that Croatia’s GDP has grown after falling for four consecutive quarters and growing at its highest rate since 1996, when the national statistics office began collecting that data. In 2020, economic activity shrank by 8%.

The government said in a statement that Croatia’s GDP growth was also significant in relation to current Eurostat data, the fifth highest in the EU, after Spain, France, Hungary and Italy. Along with Hungary, Croatia also has the fifth fastest growth among Central and Eastern European countries.

“The fact that Croatia now has more people employed than before the COVID-19 crisis proves that we have gone from the job-holding phase to job creation. Croatia’s approach to balancing measures to protect public health and the economic sector has proven effective, as evidenced by the results of the tourist season, which are beyond expectations. The government is committed to the reforms and investments envisaged by the National Recovery and Sustainability Plan, as well as to the reconstruction of earthquake-stricken areas. “The nearly 25 billion euros provided by the EU for the next decade will be a strong lever for Croatia’s economic development,” Plenkovi tha said.

Economic growth in Q2 2021 is due to the growth of all components of GDP, mainly personal consumption as its largest component. DZS data show that household spending in Q2 increased by 18.4% from Q2 2020, as it decreased by 0.3% in Q1. Exports of goods and services increased by 40.9%, due to the significant recovery of tourism-related services.

The government has contributed to the economic recovery and the huge increase in personal consumption with its employment policy, which has kept the labor market stable and by continuing tax reform, which has enabled the further increase of the average wage, he said. government.

Croatia’s GDP growth in the second quarter is higher than the EU average, which stands at 13.2%. In the first half of 2020, the country’s GDP grew by 7.7% from the same period in 2020, the government said in its statement.

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