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Croatian banks revise 2019 GDP growth forecast up to 3.0% - HUB

Author Iskra Pavlova
Croatian banks revise 2019 GDP growth forecast up to 3.0% - HUB GDP, Creative Commons.

ZAGREB (Croatia), July 8 (SeeNews) -  The Croatian Banking Association, HUB, said on Monday the chief economists at the country's top five banks have revised their 2019 economic growth forecasts up to 3.0% from previously expected 2.6%.

The upward revision was supported by the better than expected GDP growth of 3.9% in the first quarter of the year, HUB said in a statement.

However, the revision should be considered with caution since the latest forecast has a very short range, from 2.8% to 3.2%, the statement noted.

The economists also projected an average GDP growth of 2.5% for 2020, expecting lower contribution of all aggregate demand components compared to 2019.

Next year, the economists see the unemployment rate declining to 6.8% from 7.4% projected for 2019.

The average growth of gross wages is seen slowing down to an annual 4.2% in 2020 from the anticipated 4.9% this year.

Asked when they see Croatia entering the eurozone, two economists pointed to 2023, two to 2024-2025 and one said 2024.

Their projections are broadly in line with the expectations of the government, which sent last week a letter of intent to launch the eurozone accession process.

The government in Zagreb expects that the economy will grow 2.5% this year, slightly decelerating from the 2.6% expansion in 2018.