PM Plenkovic: Government expects double-digit GDP growth in 2021

NEWS 05.01.202214:38

Opening the cabinet meeting on Wednesday, Prime Minister Andrej Plenkovic said that the government expects economic growth for 2021 to be in double-digits, which is more optimistic than the government's previous projection of a 9 percent growth.

The government’s last official GDP forecast in 2021 was nine per cent however the latest available indicators show that we can be more optimistic, the Prime Minister said.

According to Plenkovic, the indicators show that last year’s growth will be in double-digits.

He cited that the value of fiscalised receipts last year was 4.7 percent higher than in 2019 with retail trade being the most conspicuous, up 8.7 percent and the figures in tourism reached equivalent of 90.6 percent in the record 2019.

Due to the better budget revenue and the fact that the expenditure side of the budget wasn’t higher than expected, the Prime Minister expects the deficit to be narrower than originally planned,  below 4 percent of GDP.

Plenkovic expects government debt to be reduced by about four percentage points to 83 percent of GDP.

Plenkovic attributed the favorable indicators to the results of the government’s jobkeeping measures, well-prepared tourism season and the agility of the economy and citizens.