October the 17th, 2022 - The International Monetary Fund (IMF) has released its predictions amid ongoing inflation, the Ukraine-Russia war and spiralling energy prices during the post-pandemic period. What precisely awaits the Croatian economy according to their predictions?
As Poslovni Dnevnik writes, the main problem that is currently being experienced on a huge scale is that this current economic slowdown is very widespread. A third of the global economy could end up having to record a "technical recession", which is equal to two consecutive quarters of contraction of economic activity,'' Croatian economist Matej Bule from the Croatian National Bank told the Croatian Radio network.
''An additional problem is that that same economic slowdown is simultaneously being accompanied by very strong inflationary pressures,'' he pointed out, adding that the Republic of Croatia is currently handling it better than some other comparable countries, which might come as a surprise to those who feel that their pockets and bank accounts are taking hit after expensive hit.
"Everything is currently heading in the direction of normalising these inflationary pressures"
"We had double-digit growth back in 2021, in 2022, growth of 5.6 percent is expected for the Croatian economy, but for 2023, all relevant institutions expect a strong slowdown for the economy," he said, adding that growth of a mere 1 percent is expected next year.
He also stated that the movement of inflation will depend on a number of factors, and one of the most important things is that we'll have to keep a close eye on the movement of the prices of raw materials on the global market.
For more on the Croatian economy and ongoing inflation, make sure to keep up with our dedicated news section.
