We've kept our 2024 GDP growth forecast for Croatia at 3.5% but revised down our 2025 GDP forecast by 0.2ppts to 1.8%. Our downgrade reflects the planned large hike in energy prices early next year that will cause real income growth to slow down considerably. Still, the economy will likely continue to outperform the eurozone average next year and over the long term.
Croatia: Above-target inflation will weigh on consumption next year