Such developments indicate the end of the slowing down of GDP growth, which in 2004 was 3.8%.
HGK analysts say, however, that last year's GDP growth rate is not the result of major improvements in the national economy.
A comparison with neighbouring countries shows that in 2004 Croatia's GDP amounted to 46% of the average GDP per capita in the EU25. Latvia was the only EU country with a lower rate of GDP per capita (43%). With the estimated GDP growth rate of 4.1% in Croatia and 1.6% in the EU, and the approximate inflation rate of 3.3% in Croatia and 2.2% in the EU, Croatia's share in the EU average in 2005 will rise only by slightly more than one percentage point. To achieve the EU's level of development sooner, Croatia will need much higher growth rates, HGK analysts say.