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IMF predicts 0.8 pct economic downturn in Croatia this year

ZAGREB, Oct 7 (Hina) - The Croatian economy will record a 0.8 percent downturn this year and is estimated to grow 0.5% in 2015, according to the International Monetary Fund's autumn economic outlook, published on Tuesday.

Compared to last spring's outlook, the IMF increased its forecast of Croatia's GDP decline from 0.6 to 0.8% as well as the forecast of GDP growth in 2015, from 0.4 to 0.5%.

The IMF Executive Committee increased its forecast of Croatia's GDP decline to 0.8% in late May already after consultations with Croatia on Article IV of the IMF Statute.

In the latest outlook, the IMF predicts that consumer prices will decrease 0.3% this year and that in 2015 inflation could be 0.2%. The unemployment rate, after last year's 16.6%, could reach 16.8% this year and 17.1% in 2015.

This year and in 2015 the balance of payments is estimated to show a GDP surplus of 2.2%.

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