June 7 (SeeNews) - The World Bank said on Wednesday it expects Croatia's economy to grow by 1.9% in 2023, up 1.1 percentage points compared to the bank's previous prediction made in January.
"Growth is expected to gather pace in 2024-25, partly owing to increased use of funding from the EU Recovery and Resilience Facility (RRF), including by Bulgaria and Croatia, a new member of the euro area since January 2023," the World Bank said in its Global Economic Prospects June 2023 report.
Croatia’s economic output will increase by 3.1% next year, the global lender said, maintaining its January forecast. For 2025, it predicts 3.3% real economic growth for the Adriatic country.
Croatia's gross domestic product (GDP) grew by a real 6.3%.
Regarding the euro area, growth is forecast to slow to 0.4% in 2023, from 3.5% in 2022, owing mainly to the delayed effects of monetary policy tightening, the World Bank said. The upward revision of 0.4 percentage points relative to January mainly reflects the better-than-expected data at the beginning of the year and the downgrade to energy price projections.