FX.co ★ Croatia Economy Expands 2.9% in Q1

In the first quarter of 2025, Croatia's economy expanded by 2.9% compared to the same period the previous year. This marks a deceleration from the revised 3.9% growth observed in the last quarter. The slowdown is attributed to weaker growth in key components of domestic demand, including household consumption, which grew by 1.7% compared to 6.3% in the fourth quarter, government spending, which increased by 5.8% compared to 8.9%, and gross fixed capital formation, which rose by 4.5% compared to 9.5%. Additionally, net external demand had a negative impact on GDP, with imports increasing by 8.8% compared to a 6% rise in exports. Seasonally adjusted figures show that GDP grew by 0.3% in the March quarter, a decrease from the previously revised 1.2% growth in the preceding period.