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WB revises upward forecast for Croatia's growth to 2.9% in 2017

07.06.2017  10:49
The World Bank revised upward its forecast for Croatia's growth in 2017 from 2.5% to 2.9%, according to the Bank's June 2017 Global Economic Prospects.

In 2018 and in 2019, Croatia's economy will pick up at rates of 2.5% and 2.6% respectively.

"The World Bank forecasts that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies," the Bank stated on its web site. 

According to the World Bank's June 2017 Global Economic Prospects, growth in advanced economies is expected to accelerate to 1.9 percent in 2017, which will also benefit these countries trading partners. Global financing conditions remain favourable and commodity prices have stabilised. Against this improving international backdrop, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016.

“After a prolonged slowdown, recent acceleration in activity in some of the largest emerging markets is a welcome development for growth in their regions and for the global economy," said World Bank Development Economics Prospects Director Ayhan Kose was quoted as saying.

“Now is the time for emerging market and developing economies to assess their vulnerabilities and strengthen policy buffers against adverse shocks."

The World Bank's forecasts for Croatia's growth correspond to those made by the European Commission that revised downward Croatia's economic growth from 3.1% to 2.9%, and mildly revised upward the forecast from 2.5% to 2.6% for 2018.

The Croatian National Bank estimates that Croatia's economy may expand by 2.8% in 2017, and Croatian government's forecast is even more optimistic, 3.2%.

Source: HINA