Croatia raises 2024 GDP growth forecast to 3.5%

The finance ministry also expects 3.1% inflation in 2024, a budget deficit equivalent to 2.6% of the expected gross domestic product (GDP), and a public debt equivalent to 59.2% of GDP, Primorac told reporters, as seen in a video published by public broadcaster HRT.

The 2024 budget approved in November is based on forecasts of real GDP growth of 2.8%, 3.1% inflation and a budget deficit equivalent to 1.9% of GDP. The ministry projected back then that the ratio of public debt to nominal GDP would drop to 58% this year.

On Tuesday, the statistical office said in a first estimate of Croatia's economic performance in the January-March period that Croatia's economic output rose by a real 3.9% year-on-year, slowing down from 4.4% annual growth in the previous quarter.

The European Commission said earlier this month that it expects Croatia’s economy to grow 3.3% in 2024 and 2.9% in 2025, largely driven by strong household consumption.