The International Monetary Fund has revised upwards to 6.3 percent the projection of the Croatia's GDP growth this year, according to its latest report released on Tuesday.

In April’s outlook, the IMF projected that Croatia’s GDP would grow 4.7 percent this year and 5 percent in 2022, while last month, at the end of regular consultations with member states, its Mission projected a 5.4 percent growth for this year and 5.8 percent for 2022.

According to the latest report, the estimate of the Croatian economy’s contraction in 2020 was lowered to 8.0 percent, one percentage point less than projected last spring.

The current account deficit is projected at 0.1 percent of GDP, down 2.2 percentage points from last spring’s estimates. In 2022 the deficit is projected at 0.8 percent, half as much as the deficit projected last spring. The 2020 deficit is estimated at 0.4 percent, down from the 3.5 percent estimated last spring.

In a concluding statement after last month’s consultations, the IMF Mission said the balance of payments indicators were relatively good, despite a strong decrease in tourism revenue.

Annual inflation projections for this year and the next have been raised to 2.0 percent, up 1.3 and 0.8 percentage points respectively than those projected last spring.

The 2020 inflation is estimated at 0.1 percent, down 0.2 percentage points from last spring’s estimate.

Commenting on inflation in September’s concluding statement, the IMF Mission said that despite a recent acceleration, it remained low, projecting that it would stabilize in 2023 at 2.0 percent.

In the latest projections, the unemployment rates for this year and the next have been lowered by 1 percentage points to 8.4 percent in 2021 and 8 percent in 2022.

For 2020, it is estimated at 9 percent, down 0.2 percentage points than in last spring’s projections.