ZAGREB, 28 Nov (Hina) - Driven primarily by increased consumption and investments, Croatia’s economy expanded for the 15th consecutive quarter, achieving a 3.9% annual growth rate in the third quarter of this year, outpacing the growth of 3.5% recorded in the previous quarter.

The Croatian Bureau of Statistics (DZS) released its preliminary estimate on Wednesday, indicating that gross domestic product (GDP) grew in the third quarter of 2024 by 3.9% in real terms compared to the same period of 2023.

Growth supported by consumption and investments

Household consumption, the largest component of GDP, rose by 5.5% year-on-year in the third quarter, though this marked a slight slowdown from the 6% growth recorded in the previous quarter.

Gross fixed capital investments increased by 9.2% compared to the same period last year, down from an 11.7% rise in the second quarter.

Government spending also saw a significant boost, increasing by 5.3% after a 3.8% rise in the previous quarter.

Imports of goods and services grew by 4.1%, slower than the 5.2% growth in the previous quarter. This included a 3% rise in goods imports and a 9.6% increase in services imports.

Exports of goods and services, however, grew by just 1.5% year-on-year in the third quarter, recovering from a 1.3% decline in the previous quarter. Goods exports rose by 6.3%, while services exports fell by 1.8%.

Growth above EU average

According to seasonally adjusted data from the DZS, Croatia's economy in the third quarter grew by 4.1% year-on-year and 0.8% quarter-on-quarter.

This places Croatia’s economic growth rate significantly above the EU average.

Eurostat recently reported that the EU economy in the third quarter grew by 0.3% quarter-on-quarter and 1% year-on-year, while the eurozone economy increased by 0.4% quarter-on-quarter and 0.9% year-on-year.