The European Bank for Reconstruction and Development (EBRD) expects Croatia’s real economic growth to reach 3.6% this year, an upward revision of 0.7 percentage points from its previous forecast in May.

EBRD also lifted its forecast for Croatia’s real GDP growth in 2025 by 0.2 percentage points to 3.0%. It believes that Croatia’s economic growth next year will be driven by EU-funded investments and reflect a weaker momentum in consumption as the wage growth effect wanes.

Croatia’s economy expanded 3.1% last year. The EBRD projects that the economy of Central Europe and the Baltic countries, which includes Croatia, will grow by 2.3% this year and 3.2% in 2025. This represents a 0.1 percentage point increase in its forecasts for both 2024 and 2025. Last year, the region’s economic growth was 0.2%.