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Croatia's GDP expected to rise to 4.4% in 2006 - European Commission

Autor: ;mses;
BRUSSELS, May 8 (Hina) - Last year, the real Gross Domestic Product(GDP) in Croatia grew stronger than expected by 4.3 percent up from3.8 percent in 2004, and the real GDP growth is expected to slightlyincrease to around 4.4 percent in 2006 and to 4.5 percent in 2007, theEuropean Commission said in the spring economic forecast.
BRUSSELS, May 8 (Hina) - Last year, the real Gross Domestic Product (GDP) in Croatia grew stronger than expected by 4.3 percent up from 3.8 percent in 2004, and the real GDP growth is expected to slightly increase to around 4.4 percent in 2006 and to 4.5 percent in 2007, the European Commission said in the spring economic forecast.

The publication contains economic forecasts for the period 2006-2008 covering 25 European Union member states and three countries candidates.

The Croatian economic growth is generated mainly by domestic demand, particularly by a rise in private investments and higher public consumption.

Croatia's real export of goods and services rose by 4.6 percent in 2005, while the import rose by 3.5 percent in real terms.

The contribution of the private consumption to the economic growth fell by 2.3 percent to 2.1, while the contribution of capital investments rose to 1.4 percent in 2005 in comparison with 1.2 percent in 2004.

The average annual inflation, measured by consumer prices, rose from 2.1 percent in 2004 to 3.3 percent in 2005 due to trends on the energy products market.

The amount of the foreign direct investments rose by 53 percent from 2004 reaching 3.7 percent of GDP in 2005.

(Hina) ms

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