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IMF nearly doubles forecast of Croatia's 2016 growth

Author: Hari Alfeo

ZAGREB, April 12 (Hina) -  The International Monetary Fund has nearly doubled its 2016 growth forecast for Croatia and the growth is projected to accelerate further in 2017, according to the latest IMF World Economic Outlook.

This year Croatia's economy is forecast to grow 1.9 percent, whereas last October the IMF forecast a growth of 1%. The IMF has also doubled the forecast of Croatia's growth for 2015 to 1.6% from the previously forecast 0.8%. As for 2017, the IMF projects that Croatia's economy will growth 2.1%.

The projections of the balance of payments surplus have been revised upwards from last autumn's 1.5% to 2.7%. The forecast of last year's surplus has been increased from 1.7% to 4.4%. In 2017, the IMF projects that the balance of payments surplus will slide to 2.1%.

The inflation forecast for this year has been revised downwards from 1.1% last autumn to 0.4%. The IMF estimates that last year prices decreased 0.5%, up from a 0.4% decrease forecast last autumn. In 2017, inflation is projected at 1.3%.

The IMF has also revised upwards its projection of this year's unemployment rate by 0.3 percentage points to 16.4%. It also raised by 0.3 pp its forecast of last year's unemployment rate to 16.9%. For 2017, the IMF forecasts the unemployment rate at 15.9%.

The IMF includes Croatia in emerging European economies. Their growth forecast for this year has been raised by 0.4 pp to 3.5%, the same as for 2015, while the growth projection for 2017 is 3.3%, down 0.1 pp from the previous forecast.

The IMF forecasts global growth at 3.2% in 2016 and 3.5% in 2017, a downward revision of 0.2% and 0.1%, respectively.

(Hina) ha

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