Croatia projects 2021 GDP growth at 5 pct: PM

Croatia’s gross domestic product (GDP) is projected to grow by five percent in 2021, Prime Minister Andrej Plenkovic said here on Thursday.

Presenting the draft state budget for next year in Parliament, the prime minister said that the proposal ensures economic recovery from the pandemic-induced recession and also from the consequences of the 5.5-magnitude earthquake that hit the capital Zagreb on March 22, 2020.

“It is good that after even more pessimistic forecasts, GDP is expected to fall by eight percent this year, which is less than we originally planned,” Plenkovic said.

The country’s total revenues in 2021 are planned at 147.3 billion kuna (23 billion U.S. dollars) and expenditures at 157.9 billion kuna.

The Croatian government plans to reduce public debt in the coming years, and GDP growth is projected at 3.4 percent in 2022 and 3.1 percent in 2023.

“The goal in the budget is to protect the most vulnerable groups and encourage entrepreneurs and the economy,” the prime minister said. (1 Croatian kuna = 0.16 U.S. dollar)