Vujcic: Croatia's GDP growth to remain at some 3 pct in 2019

The trends are in line with earlier expectations, he said, adding that global market protectionism posed the one significant risk for meeting growth projections, tportal reported.

“In the early phase, it should not affect growth significantly. The results of measures implemented to date are still limited, but further escalation of trade tensions could have severe global consequences,” Vujcic said.

Croatia’s direct exposure is not considerable, but the risk remains of being affected indirectly through trade partners, especially Europe considering trade and other economic relations, he said.

HNB estimates that domestic GDP will grow 2.9 percent this year, and 2.7 percent in 2019.

Vujcic said the main problem limiting future GDP growth in Croatia was labour shortage.

According to his estimates, the number of people on the Croatian labour market will be reduced by some 520,000 by 2040.

Vujcic added that the estimates did not include the negative migration trends, which additionally weakens the workforce.

The problem can be resolved in three ways, he said – by prolonging working careers, importing foreign workers, or introducing robots into the workforce.

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