Macroeconomic Forecast Croatia

We maintain our expectation for Croatia's economy to dip back into recession in 2012 before regaining ground in 2013 and forecast real GDP growth of -1.5% in 2012 and 1.0% in 2013. The government's continued bias towards fiscal austerity and structural adjustment of the economy will see to it that government spending and investment drags on growth this year. Furthermore, Croatia's heavy exposure to the eurozone will weigh on private consumption and export growth this year.

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