Croatia's GDP in 2019 is expected to grow at the rate of 2.7 percent, unchanged from the expected growth in 2018, said Croatia's central bank governor, Boris Vujcic, at a news briefing in Zagreb on Tuesday.

We expect the growth to be at the same rate as this year, 2.7 percent. However, downward risks are prevailing, Vujcic said.

The main contribution to the growth will come from personal consumption, which is likely to rise from the expected rate of 3.2 percent this year to 3.5 percent in 2019, he added.

Gross fixed capital formation could be markedly intensified from this year’s projection of 3.7 percent to 6 percent in 2019, provided that state investments rise on the back of a stronger absorption of EU funds, he said.

Investments are vital, as they pave the way for stable and sustainable growth, he added.

Considering the labour market, the bank expects employment to grow and, in parallel, unemployment to fall to a record low 7.2 percent in 2019.

This year, employment is set to rise at the rate of 2.4 percent, and a further 1.8 percent in 2019.

The inflation rate is expected to slow down from 1.5 percent in 2018 to 0.9 percent in 2019.

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