Croatia's economy grew by 16.1% in the second quarter of 2021 compared to Q2 2020, which is the first time it grew after going down for four consecutive quarters and at the highest rate since 1996, when the national statistical office started collecting those data.

The state statistics bureau (DZS) on Friday published its preliminary estimate showing that GDP in Q2 grew by 16.1% from the same period of 2020.

The previous record GDP growth of 7.2% was reported in Q2 1997.

The record GDP growth in Q2 is owing, among other things, to last year’s low base since in Q2 2020 GDP dropped by a record 14.4% on the year due to the introduction of epidemiological restrictions designed to contain the spread of the coronavirus disease and the consequent economic lockdown. In 2020 the economy contracted by 8%.

Economic growth in Q2 2021 is owing to the growth of all GDP components, mostly personal consumption as its biggest component.

DZS data show that household spending in Q2 grew by 14% from Q2 2020, after going down by 0.3% in Q1.

The export of goods and services grew by 40.9% on the year, with the export of goods rising by 35.2% and the export of services by 56.3%, mostly owing to the recovery of tourism in relation to the same period last year.

The import of goods and services rose by 30.3% on the year, with the import of goods increasing by 30.5% and the import of services by 28.9%.

Gross investments in fixed assets rose by 18.3% on the year, much faster than in Q1, when they grew by 4.6%.

Government spending grew as well, by 4% year-on-year.

According to seasonally adjusted data, Croatia’s economy in Q2 2021 rose by 16.1% compared to Q2 2020 and by 0.2% compared to Q1 2021.

For the sake of comparison, according to the latest Eurostat data, in Q2 2021 the seasonally adjusted GDP in the EU grew by 13.2% from Q2 2020 and by 1.9% from Q1 2021.