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Croatia's Economy May Expand About 18% in 2nd Quarter: Vujcic - Bloomberg

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Croatia’s economy may expand about 18% in the second quarter fueled by growing tourism revenue that helped reverse a steep contraction in the same period last year, Central Bank Governor Boris Vujcic told reporters at the panel in Dubrovnik on Sunday.

The central bank last week raised this year’s growth forecast to 6.8% from the earlier prediction of 5.9% growth. The economic expansion forecast is based on the expectation that income from tourism may reach 70% of 2019 levels, the year before the Covid crisis.

“We are facing a V-shaped recovery, but the main risk is still the potential worsening of the epidemiological situation,” Vujcic said.

Should revenue from tourism, Croatia’s main industry, remain at 50% of the 2019 levels, that would lower the annual growth prediction by about 2 percentage points, according to Vujcic.

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