Croatia's Gross Domestic Product (GDP) increased by 4% in the last quarter of 2022 compared to Q4 2021, and the Croatian Chamber of Economy (HGK) said on Tuesday that the growth was higher than expected.

The HGK noted that the previous projections and forecasts were more modest, and its chief economist Goran Saravanja said that the first estimates released today by the national statistical office proved that industrial production could not indicate all trends in the economy.

He recalled that industrial output shrank by 3.7% in Q4 2022 on the year.

However, the construction industry and the IT and telecommunications are two sectors that fared well during the COVID pandemic, growing by 2.9% and 10.5% respectively in Q4 2022, the analyst said.

The HGK believes that the growth will decelerate in 2023 due to increases in the prices of energy, raw materials and food.