EU Commission lifts Croatia's 2022 GDP growth projection to 6%, cuts '23 f'cast

This year's economic growth in Croatia will be underpinned by booming exports, investments and household consumption, benefitting from a recovery of tourism and other services, the Commission said in its Autumn 2022 Economic Forecast report.

"However, rising inflation and declining confidence amidst geopolitical tensions are deteriorating the economic outlook and public finances, affecting most notably 2023 and 2024,” the Commission said.

Next year, the EU's executive body expects government consumption and investment to be the main growth drivers in Croatia.

In 2024, real GDP is expected to expand by 1.7%. Private consumption is set to be the main driver of growth, backed by employment and a recovery in real wages.

In the report, the Commission increased its 2022 inflation forecast for Croatia to 10.1% compared to 8.2% predicted this summer. In 2023, inflation should decelerate to 6.5%.

Croatia's economic output grew by a real 13.1% in 2021, according to the report. The inflation rate in the Adriatic country reached 2.7% last year.