Croatia’s economy grew by 1.7% year-on-year in the second quarter of 2026, down from an upwardly revised 2.3% in the previous quarter and marking the weakest expansion since the contraction recorded in Q4 2020. Overall consumption growth slowed to 0.9% from 1.9%, largely due to a pronounced deceleration in household spending (0.5% vs 2.6%).
Imports rose sharply by 3.4%, reversing a 0.3% decline in the prior quarter, driven by higher purchases of both goods (2.5% vs -1.1%) and services (7.8% vs 4.8%). Exports also rebounded, increasing 3% after a 1.6% drop, supported by a 5.2% rise in goods shipments, which partly offset the weakness in domestic demand. Government consumption accelerated notably, rising 2% compared with 0.7% in the previous quarter.
On the production side, manufacturing output was flat after a 1.1% increase in Q1. Growth in wholesale and retail trade slowed to 0.8% from 1.8%. Professional and scientific services contracted by 0.6%, though this represented a moderation from the 1.1% decline in the preceding quarter. On a seasonally adjusted quarterly basis, GDP expanded by 0.4%, following a 0.1% contraction in the first quarter.
