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Croatia's economy may grow 8.5% this year, more than expected, fueled by household consumption and revenue from tourism, central bank Governor Boris Vujcic said.
“We are witnessing a very fast recovery, with almost all industries returning to pre-pandemic growth levels,” Vujcic said at a money-market conference in Opatija, Croatia. “Business optimism has also grown across sectors, especially in service industry.”
The European Union nation most reliant on tourism has outperformed expectations for its summer season and expects earnings at levels similar or better compared to those in 2019, a record year. In an earlier forecast in July, the central bank said economy may grow 6.8% this year.
Economic growth is expected to slow down to 4.1% in 2022, with the pandemic posing the greatest risk for the Adriatic country's economy. Inflation is forecast to accelerate to 2.3% this year as energy and food prices continue to grow and slow next year, according to Vujcic.
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