This report reviews key macroeconomic data and microeconomic developments for Croatia published between December 5 and January 5, 2016.
In December, both the World Bank and Croatia’s central bank revised up their growth projections for 2015. The World Bank said it now expects GDP to expand by 1.5% in 2015, compared to 0.9% expected in October. The central bank raised its 2015 projection to 1.7% from 1.2% forecast in October.
The central bank raised also its 2016 outlook - to 1.8% from 1.5%.
The report also reveals the latest developments in the negotiations for the formation of a new government and the name of the agreed Prime Minister designate.
It also provides details on Croatia’s issuance of a a HRK6bn (€786.5mn) 11-year bond on the domestic market, as well as the latest decisions of the central bank regarding the banks’ required foreign reserves.
The report also shows the results of the tender for the development of a LNG terminal with a nominal capacity of 6bn cubic metres on the Croatian island of Krk.




Key Points:


• Croatia's consumer prices fell 0.9% y/y in November, the same as in the previous month. The working-day adjusted industrial output rose 2.7% y/y in November, slowing from a 6.4% annual hike in the previous month.
• The unemployment increased to 17.7% in November from 17.2% in October. The average net monthly wage rose 4.3% in October, slowing from a 4.4% hike in September.
• January-October trade gap narrowed 1.6% y/y as exports rose at a faster pace than imports.
• Croatia’s current account surplus widened to €3.89bn in the third quarter of last year from a revised surplus of €19mn in the previous quarter.