Croatia’s economy expands 16.1% in second quarter after COVID plunge

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Croatia’s gross domestic product (GDP) rose by a record 16.1% year on year in the second quarter of 2021, after contracting in each of the past four quarters because of the coronavirus crisis, the state statistics bureau said.

Such a quarterly rise has not been seen since records began in 1996, when the then new Balkan state and now European Union member began compiling regular economic data. The previous record rise for the second quarter was 7.2% in 1997.

The latest jump in economic activity started from a low base, after GDP fell a record 14.4% in the second quarter of 2020 because of lockdown and other measures to contain the pandemic. Croatia’s economy contracted by 8.4% in 2020.

The main contributors to the rise were personal and household consumption, which rose 14% year on year, and the export of goods and services, which jumped 40.9%, the data showed.

The government has said it expects growth of 5.2% this year.

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