Croatia Economy Accelerates to 3.4% in Q2

Croatia's economy expanded by 2.3% year-on-year in the third quarter of 2025, slowing from an upwardly revised 3.6% growth in the preceding period. Net external demand had a negative impact on GDP, as exports (-1.1% vs 0.7% in Q2) declined, while imports increased (2.4% vs 0.1%). Weaker growth was also observed in household consumption (1.9% vs 4%). Meanwhile, gross fixed capital formation (7.5% vs 4.9%) and government spending (3.8% vs 3.3%) increased. On a seasonally adjusted quarterly basis, GDP rose by 0.3% in the September quarter, following a 0.9% growth in the previous quarter.

Croatia’s economy expanded 3.4% year-on-year in the second quarter of 2025, up from a 2.9% growth in the previous quarter. The acceleration was supported by stronger household consumption (4.0% vs 1.7% in Q1), increased gross fixed capital formation (5.2% vs 4.5%), and sustained government spending (2.4% vs 5.8%). On the external front, both exports (1.6% vs 6.0%) and imports (3.3% vs 8.8%) expanded at a slower pace, indicating moderated foreign trade momentum. On a seasonally adjusted quarterly basis, GDP rose 1.2% in Q2, accelerating from 0.4% growth in the preceding period.

Croatia's economy grew by 2.9% year-on-year in the first quarter of 2025, slowing from an upwardly revised 3.9% expansion in the previous quarter. The slowdown was driven by weaker growth in household consumption (1.7% vs 6.3% in Q4), government spending (5.8% vs 8.9%), and gross fixed capital formation (4.5% vs 9.5%). Net external demand also contributed negatively to the GDP, as imports (8.8%) rose more than exports (6%). On a seasonally adjusted quarterly basis, GDP rose by 0.3% in the March quarter, easing from a downwardly revised 1.2% growth in the preceding period.