Croatia's real GDP in the first nine months of this year was 8.3% lower than in the same period of last year, with the intensity of economic recovery slowing at the end of the third quarter and the beginning of the fourth, the Croatian Central Bank (HNB) said in a statement from a meeting of the HNB council on Wednesday.

The HNB Council met to discuss current economic and financial trends, adopting a report on the financial situation, price stability and monetary policy in the first half of 2020.

According to available monthly indicators, economic activity is expected to grow in the third quarter following a strong downturn in the second quarter caused by the coronavirus pandemic and restrictions imposed to contain it. Based on the estimate for the third quarter and data for the first half of the year, real GDP in the first nine months of 2020 was 8.3% lower than in the same period of 2019, the central bank said.

The epidemiological situation markedly deteriorated at the end of October, which could have a negative impact on developments in the fourth quarter, the HNB concluded.