Croatia GDP Growth Slows Sharply In Q3

(RTTNews) - Croatia's economy grew at the slowest pace in nearly six years during the third quarter mainly due to a sharp slowdown in consumption growth and weaker exports, preliminary estimates from the statistical office showed on Thursday.

The unadjusted gross domestic product grew 2.3 percent year-on-year, which was much slower than the 3.6 percent expansion in the three months to June, data from the Croatian Bureau of Statistics showed.

The latest GDP outcome was the weakest since the fourth quarter of 2020, when the economy shrank. A slower growth was last logged in the final three months of 2019, when the economy expanded 1.9 percent.

Consumption growth weakened to 2.3 percent from 3.8 percent with significant slowdown in growth in spending by households and non-profit institutions. State consumption growth improved to 3.8 percent from 3.3 percent.

Gross fixed capital formation increased 7.5 percent after a 4.9 percent growth in the previous three months.

Exports decreased 1.1 percent after a 0.7 percent growth in the previous quarter. Services exports shrunk notably. Imports grew 2.4 percent after a modest 0.1 percent gain in the previous three months.

The seasonally adjusted GDP grew 0.3 percent from the second quarter, when output rose 0.9 percent. The growth rate was the slowest since the first quarter of 2024, when the economy expanded the same pace.

The adjusted year-on-year growth rate fell to 2.6 percent from 3.3 percent in the previous quarter.