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Republic of Croatia: 2024 Article IV Consultation-Press Release; and Staff Report

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  • International Monetary Fund

Abstract

Croatia is the newest euro area (EA) member. Following a very strong recovery in 2021–22, growth moderated to 3.1 percent in 2023, still among the highest in the EA. Inflation has decelerated considerably since early 2023 but remains above the EA average, while the labor market remains tight. Growth is expected to stay robust in 2024–25, led by strengthening household real incomes and investment supported by EU funds. Inflation is expected to gradually approach 2 percent in late 2025. Risks to the outlook are broadly balanced. Subdued productivity and labor shortages are the main obstacles to potential growth.

Suggested Citation

  • International Monetary Fund, 2024. "Republic of Croatia: 2024 Article IV Consultation-Press Release; and Staff Report," IMF Staff Country Reports 2024/246, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2024/246
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