World Bank Revises Croatia's GDP Growth Down

New estimates of Croatia's likely GDP growth from the World Bank are not looking good for the country as it battles to exit a six-year economic crisis.

The World Bank in June 2014 estimated Croatia's GDP growth that year would be minus-0.5 per cent, rising to 1.2 per cent growth in 2015.

Its new forecast for 2015 is more pessimistic, predicting growth of only 0.5 per cent of GDP in 2015, rising to 1.5 per cent in 2016 and 2017.

Bank figures including post-transitional and transitional European countries and former Soviet countries in Central Asia put Croatia at the bottom of the growth forecast.

Regarding other Western Balkan countries, the World Bank forecasts significant GDP growth of 3 per cent for Albania, 1.5 per cent for Bosnia and Herzegovina, 3 per cent for Kosovo, 3.5 per cent for Macedonia and 3.4 per cent for Montenegro.

The only western Balkan country in a worse position than Croatia is Serbia where the Bank expects minus-0.5 per cent growth in 2015.

In the eastern Balkans, Bulgaria can expect 1.1 per cent growth and Romania 3.2 per cent GDP growth in 2015. The economy of Croatia's Central European neighbour, Hungary, is expected to grow 2 per cent in 2015.

Gloomy forecasts for the Croatian economy will add to the burdens facing the unpopular centre-left government in an election year which has already seen a centre-left President turfed out by a centre-right challenger.