Economy Minister Darko Horvat on Wednesday said that Croatia's economic growth in the first quarter of the year was mostly based on an "enormous jump in the growth" of investments in Croatia.

The structural reforms that occurred, merging the Investment and Competition Agency into the Economy Ministry and changing the philosophy in attracting investments has led to economic growth in the first quarter, not necessarily exclusively, but on the most part being “based on an enormous jump” in investment growth, Horvat told reporters on the margins of the third edition of “InvestCro: Investments in Key Sectors,” organised by the Styria media house.

Croatia’s GDP increased by 3.9% in Q1 year-on-year with investments recording a growth of 11.5%.

Horvat underscored that Croatia’s investment growth rate is about 11.2%, emphasising that tourism isn’t the dominant sector for investments. We have almost the investment growth in metal manufacturing, wood processing and the food industry twofold higher compared to the tourism sector, which however does not mean that we are neglecting that sector, he said.

He believes that the growth in industrial production which has been recorded for five months running, offers optimism. With the change in the structure and trends in imports, which is no longer predominantly broad consumer commodities but technology too, good things and numbers are occurring in industrial policies, he explained.

“And that is a continuity we will endeavour to maintain in the desire and intention that this growth in industrial production of 3% does not satisfy us but that we will end the year with some more optimistic numbers,” he said.

He added that one thing was for sure and that was that economic numbers in the second quarter will be good.