The Croatian Central Bank (HNB) Governor Boris Vujcic said on Tuesday that the central bank has revised upward the country's growth forecast from 1.5% to 2.9% for this year.

Addressing a conference on the first 180 days since the changeover to the euro, organised by the 24 Sata daily newspaper, the governor said that the GDP growth is expected to be coupled with a slow-down of inflation and an increase in employment.

The inflation rate is set to slow to 6.6% until the end of this year, and it will likely wane to 3% in 2024 and 2% in 2025, said the HNB governor.

The Croatian government expects the growth to rise by 2.2% this year.

In 2024, the national economy is forecast to grow by 2.6% and by 2.5% in 2025, while the growth rate is put at 2.2% for 2026, according to the government’s projections.

The government also expects the inflation rate of 6.6% in 2023 to further fall to 2.8% in 2024 and to 2.4% in 2025, while in 2006 it is likely to be at 2.2%.