Croatia: Stage set for another solid year

Fresh GDP data confirmed that the solid economic momentum extended into 2H24 (3Q GDP at 3.9% y/y), as growth remained dominated by the strong domestic demand. Looking into 2025, the outlook remains solid, with GDP growth anticipated to moderate only slightly to around 3%. The growth mix continues to point to steady domestic demand support, reflecting disposable income gains on the consumption side and still strong EU backing on the investments side. External demand is seen delivering only modestly stronger support, but it remains a risk to the forecasts amid ongoing uncertainties related to EA recovery dynamics.