Despite the increased forecast, Croatia will have to wait until 2019 for the GDP to return to the pre-crisis level.
Analysts warn that the budget deficit will rise this year.
Economists are even more optimistic in their forecasts than the government.
The biggest contribution to GDP growth in the second quarter was achieved by the growth of household final consumption expenditures, which rose by 3.8 percent.
Economists forecast a 3% GDP growth in the second quarter
Finance Minister Marić says that economy-wise everything is going according to the plan.
The Zagreb Economics Institute expects accelerated GDP growth in the second quarter.
Italian bank Intesa Sanpaolo is the latest to lower the GDP growth forecast for Croatia this year.
The European Commission has also issued five recommendations to Croatia.
Good news for Croatia’s economy.