ZAGREB, Nov. 9 (Xinhua) -- The European Commission (EC)on Thursday raised its prediction of Croatia's GDP growth from 2.9 percent to 3.2 percent, Croatian news agency Hina reported.
The bigger growth is expected, the Commission explained, because the economy has resisted the crisis in Agrokor, the biggest private company in the country that was hit by a debt crisis, as well as due to the accelerated economic growth that is expected in the second half of the year.
In the spring forecast, the Commission cut its estimate of Croatia's GDP growth from 3.1 percent to 2.9 percent due to the outbreak of the crisis in Agrokor. The Croatian government intervened in the company and installed a state-appointed manager who is now transforming the company.
However, in the new forecasts, the growth rate rose to 3.2 percent, as since the summer months, industrial production and retail trade sharply increased. In addition, according to EC forecasts, tourist arrivals and the number of overnight stays have increased by double-digit rates.
"These trends joined with strong consumer mood indicators, suggest that the economy will continue to grow strongly in the second half of the year, so the expected growth of GDP throughout 2017 could be 3.2 percent," the Commission forecasts stated.
According to the estimates, Croatian GDP will rise in 2017 above the EU average that could amount to 2.3 percent.
The Croatian National Bank has recently increased its growth estimate from 3.0 percent to 3.3 percent. The International Monetary Fund (IMF) is also optimistic and has increased its growth forecast from 2.9 percent to 3.1 percent, while the World Bank has maintained an estimate of 2.9 percent.