Croatia's GDP rises 7.7% in Q2

Photo /Vijesti/2022/26 kolovoza/IMG_2384.JPG

Prime Minister Andrej Plenković on Friday expressed his satisfaction with Croatia's Q2 GDP growth being almost double the EU average, adding that GDP growth at the end of the year will be higher than the government and international institutions had previously forecast.

The Croatian Bureau of Statistics (DZS) published its first estimates on Friday, according to which Croatia's economy grew 7.7% in Q2 year on year.

This is a faster growth than in the previous quarter when the GDP grew by 7% and this is the fifth quarter in a row that the economy is recovering from the coronavirus crisis.

Plenković underscored that GDP growth in the second quarter in Croatia was the second highest in the EU. The only country with a higher growth is Slovenia, while the average growth at the EU level is 4%. in Q2.

"Croatia's growth is almost twice as high. We can be very satisfied with that," said Plenković.

He noted that the government was conservative in its estimates of GDP growth, and as usual, the results are always better than predicted.

The PM underscored that this will happen again this year given the successful tourist season, which means the third quarter will also be very good.

"This means that GDP this year will be higher not only than we forecast, but also higher than international institutions, agencies and organisations had estimated," said Plenković.

HEP power provider has taken on a lot of burden

Croatian households are paying ten times lower prices of electricity than the market price, explained on Friday that before the war in Ukraine, a megawatt hour of electricity cost €57, only to now rise to nearly €600 on the market.

This means that the price of electricity supplies bought on the market by the state-run HEP power provider is tenfold higher than last year, while households are still paying the electricity bills as if electricity prices had not gone up, and this exemption of households from paying the market price is owing to the political decision of the Croatian government, Plenković said in Rijeka today.

Being a state-run company, HEP will have to take a lot of burden on its shoulders, he added.

The concept of the government's relief measures will distinguish three categories, the PM said.

It is important to make sure that energy bills for households will not become untenable for them. We have been making efforts to this end for several months, he added.

The second category will be electricity users in the public and nongovernmental sectors, such as pre-school institutions, schools, colleges, hospitals and civil society associations.

"As for the third category, the enterprise sector, we will make a difference between small, medium-sized and big companies. It is not the same to provide aid to a hairdresser or shoemaker or to assist a big company such as INA," said the premier.

Therefore he underscored the importance of calibrating a set of measures aimed at alleviating the situation caused by energy price hikes.