Bloomberg News

EBRD Cuts Croatian 2012 GDP Forecast, Further Reduction Likely

December 07, 2011

Dec. 7 (Bloomberg) -- The European Bank for Reconstruction and Development reduced its 2012 growth forecast for Croatia to 1.9 percent from a forecast of 2.8 percent in July and said a further reduction could follow.

The next forecast, expected in January, “will likely go downward,” Peter Sanfey, the bank’s lead economist, told journalists in Zagreb today. “We have not foreseen the extent of the crisis in the European economy when we were putting together this forecast.”

Earlier this week, Zdeslav Santic, chief analyst at Soc-Gen Splitska Banka d.d., said the economy will contract 2.1 percent next year, while Hrvoje Stojic, chief economist at Hypo Alpe- Adria-Bank d.d., a local unit of Austria’s Hypo Alpe-Adria-Bank International AG, said it will contract 2 percent in 2012. Central bank Governor Zeljko Rohatinski said in October growth should be “mild” and similar to projected 2011 growth of 0.5 percent.

--Editor: Douglas Lytle

To contact the reporter responsible for the story: Jasmina Kuzmanovic in Zagreb at

To contact the editor responsible for the story: James M. Gomez at

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