October 11, 2022 - After their previous report in April projected Croatian economy growth at the rate of 2.7 percent, the revised October projection brings much better news.
The Croatian economic activity is expected to grow by 5.9 percent in 2022, after improving by 10.2 percent in 2021. The growth is projected to slow down somewhat in 2023: just 3.5 percent. At the same time, they expect the inflation in Croatia to be 9.8 percent, after last year's 2.6 percent. For 2023, they expect the inflation at the rate of 5.5 percent. Their prognosis for the unemployment rate is additionally reduced since April, to 6.9 percent, and it's supposed to go down even further in 2023, to 6.6 percent.
Croatia is placed in the "Emerging and Developing Europe" category of states, which is expected to grow at a rate of mere 0.6 percent, so Croatian economy growth is the strongest in that group, followed by Hungary with the 5.7 percent projected growth rate.
Globally, the economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic.
Global inflation is forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5 percent in 2023 and to 4.1 percent by 2024.
