Croatian Economists Cut 2012 GDP Outlook, Bank Association Says
The average estimate of economists from Croatia’s six biggest banks in terms of assets lower than a similar forecast of a 1.3 percent contraction published in January. The banks include Zagrebacka Banka d.d., the Croatian unit of UniCredit SpA (UCG) and Privredna Banka d.d., a unit of Intesa Sanpaolo SpA. (ISP)
Economists also said the inflation rate will reach 3.3 percent this year, up from their January prediction of 2.5 percent. They also narrowed their budget-deficit forecast to 4.7 percent of gross domestic product from an earlier forecast of 4.9 percent, following the government’s fiscal cuts announced on Jan. 31.
Prime Minister Zoran Milanovic said in an interview on July 7 that Croatia’s economic-growth forecast of 0.8 percent will be “hard” to achieve this year as Europe’s sovereign-debt crisis curbs investment,
The six-month-old Cabinet led by Milanovic’s Social- Democrats made the forecast in January, planning to lure 8 billion kuna ($1.3 billion) of funds from international lenders and the European Union to modernize infrastructure.
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