In 2018, Croatia posted a general government budget surplus of 992 million kuna (€133 million), or 0.3 percent of its GDP, with the public-debt-to-GDP ratio dropping to 74.8 percent, a report with revised figures released by the state statistics bureau said.

The report on the Excessive Deficit Procedure and general government debt to GDP released on Monday indicates a consolidated general budget surplus in 2018 of HRK 992 million or 0.3% of GDP whereas in 2017 it was HRK 2.9 billion, or 0.8% of GDP.

The latest data has been revised up from the April report when DZS reported that the consolidated general budget surplus for 2018 amounted to HRK 758 million or 0.2% of GDP.

The biggest impact on the amount of 2018 surplus was due to the further fall in the government budget balance compared with the previous year from HRK 2.29 billion to 192 million, as a result of positive economic developments, DZS’s report said.

The 2018 surplus was mostly driven by the considerably improved financial result of extrabudgetary beneficiaries and public companies and by increased tax revenues.

In 2018, taxes on production and imports totalled HRK 76.7 billion, an increase of 7.2% on the previous year.

Investments also grew, increasing by HRK 13.36 billion or 32.6% more than in 2017. The surplus is also the result of a decrease in interest rates, and interest expenses amounted to HRK 8.89 billion or 9.1% less than in 2017.

Public debt at 74.8% of GDP

At the end of last year, consolidated general government debt was HRK 286.1 billion, or 74.8% of GDP, while in 2017 it was HRK 285.84 billion, or 78% of GDP. That is its lowest level since 2012 when it accounted for 69.4% of GDP.

(€1 = 7.43 kuna)