October 15 (SeeNews) - The International Monetary Fund (IMF) said on Tuesday it is lifting its 2019 economic growth forecast for Croatia to 3.0% from 2.6% predicted in April.
The IMF has also increased Croatia's economic growth forecast for next year to 2.7%, from the previously projected 2.5%, it said in the October edition of its World Economic Outlook report.
The Croatian economy is expected to further lose momentum in 2021, recording growth of 2.0%.
Croatia's gross domestic product (GDP) expanded by 2.6% in 2018, according to IMF data.
The Fund has also amended its consumer price inflation projections for Croatia, expecting an annual average increase of 1.0% in 2019 (down from the previously anticipated 1.5%) and of 1.2% in 2020 (down from 1.6%). Croatia recorded average inflation of 1.5% in 2018.
The end-year inflation is seen at 1.2% in 2019 and at 1.3% in 2020, the IMF said in the WEO report, higher than 0.9% at the end of last year.
Croatia's current account balance calculated as a percentage of GDP is projected at a positive 1.7% in 2019 (down from the previously anticipated 2.1%) and 1.0% in 2020 (down from 1.6%), after ending in surplus of 2.5% in 2018, the IMF said.
In addition, Croatia's unemployment rate is expected to drop to 9.0% this year, from 9.9% in 2018, and to further decline to 8.0% in 2020, the IMF said, keeping unchanged its April forecast.
The IMF's GDP growth forecast is in line with the projections of the Croatian central bank, which also expects the country's economy to expand by 3.0% this year.
The World Bank also lifted earlier in October its 2019 economic growth forecast for Croatia to 2.9% from the previously anticipated 2.5%, on the back of stronger domestic demand.