According to the latest forecast by Unicredit, of all the countries in the region, Croatia, Bulgaria, Romania, Latvia and Lithuania will see further economic slowdown this year, but it is only in Croatia that the projected contraction has increased.
Foreign analysts claim the Croatian economy is still far from recovery, confirming that economic recession is deeper than it was initially thought. Unicredit initially forecast that Croatia’s economy would slow down by one per cent on 2009, but the latest forecast projects a 1.5-percent contraction. The analysts of Bank Austria think so, too.
A quarterly GDP contraction bigger than expected (2.5 per cent), continued drops in industrial production and retail trade and frozen investments are the factors analysts give as their argument. The chief economist of Zagrebacka banka (Unicredit member) said he expects a slight recovery in investment activity by the end of 2010, but not enough to reverse negative trends from the first half of the year. The good news is that analysts do not expect the Croatian credit rating to change in the next 12 months, and the exchange rate of kuna against the euro will remain stabile.
Official quarterly data from the Croatian statistics agency are expected shortly. Raiffeisenbank’s analysts had projected the annual economic slowdown in 2010 at 0.9 per cent.
Source: Jutarnji list, Slobodna Damacija - 30/06/2010Foreign analysts claim the Croatian economy is still far from recovery, confirming that economic recession is deeper than it was initially thought. Unicredit initially forecast that Croatia’s economy would slow down by one per cent on 2009, but the latest forecast projects a 1.5-percent contraction. The analysts of Bank Austria think so, too.
A quarterly GDP contraction bigger than expected (2.5 per cent), continued drops in industrial production and retail trade and frozen investments are the factors analysts give as their argument. The chief economist of Zagrebacka banka (Unicredit member) said he expects a slight recovery in investment activity by the end of 2010, but not enough to reverse negative trends from the first half of the year. The good news is that analysts do not expect the Croatian credit rating to change in the next 12 months, and the exchange rate of kuna against the euro will remain stabile.
Official quarterly data from the Croatian statistics agency are expected shortly. Raiffeisenbank’s analysts had projected the annual economic slowdown in 2010 at 0.9 per cent.
