GDP up 0.3% in Q4 2014

Croatia's economy grew 0.3% in the last quarter of 2014 compared to the same period of 2013, which is the first time it has increased after declining for 12 quarters in a row.

The national statistical office (DZS) on Friday published a preliminary estimate showing that GDP in Q4 2014 rose by 0.3% on the year.

The economy thus emerged from recession after declining for 12 consecutive quarters, and the growth is slightly greater than expected.

Eight economic analysts polled by Hina had predicted that the economy in 2014 would grow by 0.2% on the year. Four of them had expected it to grow between 0.1 and 1%, three had expected it to stagnate, and one had expected it to drop by 0.3%.

Even though GDP growth is not significant, this is the third time since the start of the recession in 2009 that the economy has technically emerged from the recession, the first two times being in Q3 2010 and Q2 2011.

The DZS said in its estimate that when calculated by the expenditure method, GDP grew in Q4 2014 mainly owing to an increase in exports of goods, while being restrained the most by a decline in gross investments in fixed assets.

If the output approach to calculating GDP is applied, its growth in Q4 was mostly owing to processing industries, while the biggest drag on growth was lack of recovery in the construction sector.

The DZS's preliminary estimate shows that compared to 2013, GDP in 2014 was 0.4% down in real terms.

 

(Hina)

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