The European Commission’s forecast of a 2.8 percent growth of Croatia’s economy is realistic, said the Director General of the Croatian Employers’ Association (HUP), Davor Majetic, on Thursday, adding that the growth was slowing down because the government-planned reforms were not being implemented.

“The Commission’s forecast is realistic and it expects a somewhat slower growth rate which can be attributed to the lack of implementation of the reforms the government had planned, and we expect,” Majetic said.

The EC on Thursday confirmed its forecast of three months ago, and estimated that the Croatian economy will grow at a rate of 2.8 percent this year, and 2.7 percent next year.

“The fact that time was wasted (in implementing reforms) is reflected in the lack of any steady growth which we expect, and wanted to see,” Majetic said.

The Croatian Chamber of Economy (HGK) said that the EC forecast was in line with the Chamber’s estimates of a mild slowing of economic growth.

A somewhat higher growth rate was achieved in the preceding period, mostly due to a significant increase in the value of the export of commodities and after joining the European Union and favourable global circumstances. However, that impact on GDP growth is decreasing.

On the other hand, domestic demand is recovering, albeit not at a satisfactory pace. Last year it was 11 percent lower, compared to the period before the crisis.

“In order to achieve greater growth rates, measures are required that will impact the dynamics of growth in individual categories of domestic demand, primarily personal consumption and investments,” HGK said.
HGK added that global trends, particularly a slowing down of growth in the EU, which is Croatia’s largest market for commodities and services, will also impact Croatia’s GDP growth.

The Prime Minister, Andrej Plenkovic, said today that the forecast was “motivating.”

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