August 25 (SeeNews) - Croatia's gross domestic product (GDP) is expected to increase by over 3.0% year-on-year in the second quarter of 2017 on the back of household consumption and exports of goods, the Croatian unit of Raiffeisenbank Austria said on Friday.
"Household consumption is supported by lower taxation on labor, lower unemployment and modest but still positive developments in employment", RBA said in a weekly CEE report.
Tourism, too, is expected to have a large impact on the Croatian economy, as the sector has been growing by double digit rates in nominal terms, RBA judged.
"Exports of goods and services should confirm the better results of Croatian exporters and also Croatia itself as an attractive tourist destination," the lender noted.
Croatia's GDP growth slowed to 2.5% in the first quarter from 3.4% in the preceding quarter.