ZAGREB, Feb. 27 (Xinhua) -- Croatia's GDP growth in the fourth quarter of 2018 was 2.3 percent, lower than in previous quarter when growth stood at 2.8 percent, according to a report released on Wednesday by the Croatian Bureau of Statistics.
Throughout 2018, the Croatian economy grew by 2.6 percent compared to 2017, when it rose 2.9 percent. The 2018 growth rate is lower than recent predictions of the European Commission and the Croatian central bank.
Economic analysts estimate that GDP growth is slower than predicted and that personal consumption of citizens continues to be the strongest driver of economic growth in Croatia.
In response to data of the slowdown, Croatian Finance Minister Zdravko Maric said on Wednesday that the government was expecting that, and that the decline in industrial production and high dependence on imports would cause concern.
"We must all do everything in our power to further strengthen the domestic economy so that we can achieve better performance and reduce import dependence," Maric said.
The minister positively estimated the growth of personal consumption by 3.9 percent on a yearly basis, saying that it is the result of tax policy measures.
Director of the Croatian Employers' Association Davor Majetic estimated that further economic slowdown could be expected. He urged the government to implement reforms, and demanded that the state reduce its operating costs faster than ever before.
