Republic of Croatia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Croatia
IMF Staff Country Reports, February 12, 2019
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- Republic of Croatia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Croatia
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Bibliographic details
- Published: February 12, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484398630.002
Economic expansion and drivers
- Economic expansion continues, driven primarily by private consumption and exports of goods and services.
- Low public and private investment, and continued emigration appear to weigh on medium-term growth prospects.
Fiscal performance and contingent liabilities
- Fiscal performance has been strong.
- The materialization of contingent liabilities from government guarantees is likely to reduce the overall surplus.
- Downside risks in the near-term could include the further realization of contingent liabilities.
Near-term and medium-term downside risks
- Downside risks in the near-term stem from possible changes in regional or global economic and financial conditions.
- Medium-term growth prospects are weighed down by low public and private investment and continued emigration.
IMF staff analysis and recommendations
- The IMF staff advocated for a moderately faster fiscal adjustment.
- The report recommends accelerating the pace of debt reduction to build fiscal space and help reduce downside risks.
Financial sector and monetary policy guidance
- The Central Bank may need to address potentially tighter external conditions while continuing with strong bank supervision and macroprudential policies.
- Additional measures to prevent excessive household borrowing could be considered if needed.
Republic of Croatia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Croatia
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