May 22, 2009

Croatia GDP drops 5.8 percent

Croatia's gross domestic product declined 5.8 percent in the first three months of 2009 compared with the same period a year ago, an economist said.

A World Bank official in Zagreb forecasts the GDP will average a decline between 2.7 percent and 3.5 percent for all of 2009, depending on how successful Croatia's tourist season is this year.

Croatia's economy continued robust amid the global crisis, thanks to the country's stable financial sector, Andras Horvai, chief of the World Bank office in Zagreb, told reporters.

Horvai said experts estimated Croatia would register a decline in GDP of about 3 percent in 2009 and would stagnate at about 0.0 percent in 2010.

Croatia's unemployment rate could rise from 6 percent experienced in 2008 to 10 percent in 2010, the Web site reported.