ZAGREB, 12 Oct (Hina) - The International Monetary Fund has revised upwards to 6.3% the projection of the Croatian economy's growth this year as well as the growth projection for 2022, according to the autumn world economic outlook released on Tuesday.
In April's outlook, the IMF projected that Croatia's economy would grow 4.7% this year and 5% in 2022, while last month, at the end of regular consultations with member states, its Mission projected a 5.4% growth for this year and 5.8% for 2022.
According to the latest report, the estimate of the Croatian economy's contraction in 2020 was lowered to 8%, one percentage points less than projected last spring.
Significantly lower deficit
The current account deficit is projected at 0.1% of GDP, down 2.2 pp than projected last spring. Next year the deficit is projected at 0.8%, half as much as the deficit projected last spring. The 2020 deficit is estimated at 0.4%, down from the 3.5% 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.
Higher inflation, lower unemployment
Annual inflation projections for this year and the next have been raised to 2%, up 1.3 and 0.8 pp respectively than those projected last spring.
The 2020 inflation is estimated at 0.1%, down 0.2 pp 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 stabilise in 2023 at 2%.
In the latest projections, the unemployment rates for this year and the next have been lowered by 1 pp to 8.4% in 2021 and 8% in 2022.
For 2020, it is estimated at 9%, down 0.2 pp than in last spring's projections.
