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IMF forecasts Croatia's GDP to contract 1.1 pct this year

ZAGREB, Oct 9 (Hina) - Croatia's economy will contract 1.1 per cent this year, as against the 0.5 per cent decline forecast in April, the International Monetary Fund said in its World Economic Outlook on Tuesday.

For next year, the IMF forecasts a growth of one per cent, the same as predicted in April.

The annual inflation rate in 2012 and 2013 should be three per cent, up from the 2.2% for 2012 and the 2.4% for 2013 forecast in April.

The current account will post a 1.2% deficit this year and a 1.3% deficit in 2013, as against the 0.4% surplus predicted in April for this year and the 0.2% deficit predicted for 2013.

The IMF forecasts that this year's unemployment rate will be 14.2%, up from the 13.5% forecast in April. In 2013, it should drop to 13.3%, up from the 12.7% predicted in April.

The IMF raised from 1.9 to two per cent the forecast for this year's growth in the New Europe region, which comprises Croatia, Turkey, Poland, Romania, Hungary, Bulgaria, Serbia, Lithuania and Latvia. The forecast for 2013 was cut from 2.8 to 2.6%.

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