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Expectations for Croatian economy strongly improve in May, ZEW/Erste survey shows

Author: vmic
ZAGREB, May 21 (Hina) - Expectations for the Croatian economy strongly improved in May, a survey by the German ZEW Institute and the Austrian Erste Bank showed on Thursday.

The economic sentiment indicator for Croatia jumped by 11.9 points to 58.3 points in May in comparison with the previous month, its highest level in over five years, according to the survey.

The survey covered Croatia, the Czech Republic, Hungary, Poland, Romania, Slovakia and Turkey.

Along with Slovakia and Poland, Croatia was the only country in the Central and Eastern Europe (CEE) region in May to record an improvement in economic expectations. The index measuring expectations for the Slovak economy increased by 5.9 points and Poland's index rose by 5.3 points.

The sharpest decreases in economic expectations were observed for Romania and Hungary, their indicators dropping by 14.0 and 11.0 points respectively.

Economic expectations for the CEE region remained broadly unchanged in relation to April as the economic sentiment indicator for the region decreased by 0.7 points to 47.5 points.

Financial market experts said that the current economic situation in Croatia had improved, as a result of which its index rose by 7.2 points to -49.9 points. The negative prefix means that negative assessments still prevail.

The highest improvements were observed in Romania, whose indicator went up by 26.2 points, Slovakia (up 24.0 points) and Poland (up 22.7 points), while the situation deteriorated only in Hungary, by 6.2 points.

Overall, the experts' assessment of the current economic situation for the CEE region improved by 24.2 points to 9.4 points.

(Hina) vm

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