December 20 (SeeNews) - The Croatian Banking Association, HUB, said on Tuesday the chief economists at major local banks forecast the country's economy will grow by an average 2.9% in 2017 on the back of rising personal consumption and investment activity.
Croatia's government said earlier this month it targets a GDP growth rate of 3.2% in 2017.
Personal consumption is expected to grow by 3% next year, while government spending will increase 1.3%, HUB said in a publication combining the economic forecasts of Croatia's major banks.
Investment activity is expected to jump 5.8% in 2017, while exports are forecast to rise by 4.5%, HUB noted. The unemployment rate is expected to fall to 12.2%.
The banking association explained, however, that its prognosis for the country's budget deficit in 2017 stands at 2.4% of the GDP, somewhat higher than the government's forecast of 1.9% deficit.
Public debt is projected at 85% of the GDP, HUB added.
Croatia's GDP growth quickened to 2.9% year-on-year in the third quarter of 2016, compared with 2.8% in the preceding three months on the back of a successful tourism season. Croatia's GDP increased by a real 1.6% last year, reversing a contraction of 0.4% in 2014.